Appreciate with detailed answers

Problem 2 - Performance Evaluation (9 marks) Cranston Industries evaluates its divisions on the basis of Return on Investment (ROI). Management bonuses are also based on ROI. All investments in operating assets are expected to earn a minimum required rate of return of 9%. One of Cranston's divisions, the Wynne Division, has had an ROI ranging from 12% to 15% over the past 5 years. During 2017, Wynne had an investment opportunity that required $1,000,000 initial investment that would yield an estimated rate of return of 11%. Wynne's management decided against the investment because it believed the investment would decrease the division's overall ROI. In 2017 the Wynne Division had sales of $15.6 million and operating income of $1,300,000. The division's average operating assets were $9,900,000 during the year. Required: a. Calculate the ROI for 2017 for the Wynne Division. (2 marks) b. Calculate the Residual Income (RI) for 2017 for the Wynne Division. (2 marks) c. Would management of the Wynne Division have been more likely to accept the investment opportunity it had last year if Residual Income (RI) was used as a performance measure instead of ROI? Explain with specific numbers/details provided in the question, and your answers for part a) and b)