Business, 16.04.2020 04:34 teamzomaxx6584

Altoona Technologies, Inc. (ATI) has three divisions. ATI has a desired rate of return of 12.5 percent. The operating assets and income for each division are as follows: Divisions Operating Assets Operating Income Printer $ 540,000 $ 96,000 Copier 810,000 90,000 Fax 360,000 54,000 Total $ 1,710,000 $ 240,000 ATI headquarters has $120,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following ROIs: Expected ROIs for Divisions Additional Investments Printer 14.0 % Copier 13.0 % Fax 12.0 % Required a-1. Calculate the ROI for each division. a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $120,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $120,000 of investment funds? d. Which division offers the best investment opportunity for ATI? g. Calculate the residual income: (1) At the corporate (headquarters) level before the additional investment. (2) At the division level before the additional investment. (3) At the investment level.

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Altoona Technologies, Inc. (ATI) has three divisions. ATI has a desired rate of return of 12.5 perce...

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