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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, see $

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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, see $ 3,190, een S 733, 7ee 6.00 Company Y 5 28,760,000 S 7, 198,000 $ 373, 880 6.50 Company z $25,950,000 $ 5,198,800 $ 752,550 14.504 Required: 1. Compute the return on investment (ROI) for each company using the formule stated in terms of margin and turnover. 2. Compute the residual income foss) 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 ROL 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 Compute the return on investment (ROI) for each company using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places (le..0275 should be entered as 2.75.)) Margin Turnover ROI % % Company X Company Company z 16 % NE Med JA Heg 36 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 income oss) 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 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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