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Use the following information to answer the questions, Sales Average operating assets Net operating income Minimum required rate of return Company X $15.950,000 $ 3,190,000

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Use the following information to answer the questions, Sales Average operating assets Net operating income Minimum required rate of return Company X $15.950,000 $ 3,190,000 $ 733,700 6.001 Company Y $ 28,760,000 $ 7,190,000 $ 373,880 6.500 Company z $25,950,000 $ 5,190,000 $ 752,550 14.500 Required: 1. Compute the return on investment (ROI) for each company using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each company 3. Each company is presented with an investment opportunity that would yield a 7% rate of return a. Assume performance is measured based on ROI. Indicate whether each company will likely accept or reject the investment opportunity. b. Assume performance is measured based on residual income. Indicate whether each company will likely accept or reject the investment opportunity Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3A Reg 38 Compute the return on investment (ROI) for each company using the formula stated in terms of margin and turnover (bo not round Intermediate calculations. Round your answers to 2 decimal places (1,e..0275 should be entered as 2.75.)) Margin Company X Company Y Company Z % Turnover ROI % % 5 % % Ron Reg 2 > Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3A Req 3B Compute the residual income (loss) for each company. (Do not round intermediate calculations. Loss amounts should be Indicated by a minus sign.) Company X Company Y Company z Residual incomo (loss) Reg 1 Req 3A > Reg 1 Reg 2 Reg Req 3B Each company is presented with an investment opportunity that would yield a 7% rate of return. Assume performance is measured based on ROI. Indicate whether each company will likely accept or reject the investment opportunity Company X Company Y Company z Req 1 Reg 2 Req 3A Req 38 Each company is presented with an investment opportunity that would yield a 7% rate of return. Assume performance is measured based on residual income. Indicate whether each company will likely accept or reject the investment opportunity. Company X Company Y Company z

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