Question: Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover Compute the residual income for each
Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover Compute the residual income for each division. Assume that each division is presented with an investment opportunity that would yield 15% rate of return. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? Reject? Why? If performance, is being measured by residual income, which division or divisions will probably accept the opportunity? Reject? Why
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