Question: Exercise 1 1 - 1 4 ( A l g o ) Evaluating New Investments Using Return o n Investment ( R O I )

Exercise 11-14(Algo) Evaluating New Investments Using Return on Investment (ROI) and Complete this question by entering your answers in the tabs below:
Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be
indicated by a minus sign.)
Residual Income [LO11-1,LO11-2]
Selected sales and operating data for three divisions of different structural engineering firms are given as follows:
Required:
Compute the margln, turnover, and return on Investment (ROI) for each division.
2 Compute the residual income (loss) for each division.
Assume that each division is presented with an investment opportunity that would yleld a11% rate of retum.
a.If performance is being measured by ROI, which division or divisions will probably accept the opportunity?
b.If performance is being measured by residual income, which division or divisions will probably accept the
opportunity?
Complete this question by entering your answers in the tabs below.
Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round intermediate calculations.
Round your answers to2 decimal places.)
 Exercise 11-14(Algo) Evaluating New Investments Using Return on Investment (ROI) and

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