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Wil requise an itwestement of 5164,000 . This investment would earn $21,320 for the company Read the ceguremingids 1. What is the original return on
Wil requise an itwestement of 5164,000 . This investment would earn $21,320 for the company Read the ceguremingids 1. What is the original return on investment (ROI) for McKnight Ceramics (before making any additional invesiment)? 2. What would the ROI be for McKnight Ceramics if this investment opportunity were undertaken? Would the managet of the McKnight Ceramics division want to make this investment if she were evaluated based on ROI? Why or why not? 3. What is the ROl of the investment opportunity? Would the investment be desirable from the standpoint of Berkner Corporation? Why or why not? 4. What would the residual income (Ri) be for McKnight Ceramics if this investment opportunity were to be undertaken? Would the manager of the McKnight Ceramics division want to make this investment if she were evaluated based on Rl? Why or why not? 5. What is the Rl of the investment opportunity? Would the investment be desirable from the standpoint of Berkner Corporation? Why or why not? 6. Which performance measurement method, ROI or RI, promotes goal congruence? Why
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