Check my work 2 Selected soles and operating d to for three divisions of differe

Question

Check my work 2 Selected soles and operating d to for three divisions of different structural engineering firms are givenfollows: Division A 1a0,800 S 3,228,880 S 644,086 Division Average operating assets Net operating income Mininun required rate of return Division C 28,238,833 $ 28,888,808 S 7,228,833 5 5,228,803 S 519,840 5625,469 12.00 8.ee0s Required: 1. Compute the return on invesment (ROn for each division using the formula stated in terms of margin and tunover 2. Compute the residual income (loss for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 9% rate of return. . If performance is being messured by ROI, which division or divisions will probably accept or reject the opportunity? b If performance is being measured by residuel income, which division or divisions will probably accept or reject the opportunity Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Compute the return on investment (ROI) for each division using the formula stated in terms of maroin and turnover. (Do not round intermediate calculations. Round your answers to 2 dedimal places.) DivisionA Division B Division C 26 Req 1 Req 2 Reference lInks

Explanation / Answer

Return on Investment Requirment 1 Margin Turnover ROI Division A 644000 16100000 4 Division B 519840 28880000 1.8 Division C 626400 20880000 3

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