Consider the following data, which relate to the two divisions of McIntyre Products: Division 1 Division 2 Total assets $68,800,000 $23,200,000 Noninterest-bearing current liabilities 4,500,000 2,330,000 NOPAT 12,500,000 5,920,000 Required rate of return 11% 10% Compare the two divisions in terms of return on investment and residual income. In the past year, which division has created the most wealth for McIntyre shareholders? (Round ROI to 2 decimal place, e.g. 15.25%.)

ROI

Division 1 %

Division 2 % %

Residual income

Divison 1

Division 2

EVA had highest return on investment and had highest residual income.

However, has created most wealth for McIntyre shareholders.