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Questi Requirements llions) for 2016 and 2017 are as follows 1. Use the DuPont method of profitability analysis to explain differences in 2017 ROls between the two divisions. Use 2017 total assets as the investment base Why might Mays be less than enthusiastic about accepting the investment proposal for the new system, despite her belief in the benefits of the new technology? Larry Gostkowski, CEO of World Information Group, is considering a proposal to base division executive compensation on division RI. a. Compute the 2017 RI of each division. b. Would adoption of an RI measure reduce Mays's reluctance to adopt the new Data Table 2. Operating Income Revenues Total Assets 3. 2016 2017 2016 2017 2016 2017 PrintS 3,750 $ 6,120 S 18,900 $ 20,400 18,480 $ 21,250 11,340 13,820 computerized system investment proposal? Internet 545 691 25,100 34,550 4. Gostkowski is concerned that the focus on annual ROI could have an adverse long-run effect on World Information Group's customers. What other measurements, if any, do you recommend that Gostkowski use? Explain briefly. More Info inc y high in very low in h low incc The two division managers' annual bonuses are based on division ROI (defined as operating income divided by total assets). If a division reports an increase in ROl from the previous year, its management is automatically eligible for a bonus; however, the management of a division reporting a decline in ROI has to present an explanation to the World Information Group board and is unlikely to get any bonus. More Info to three Carol Mays, manager of the Print division, is considering a proposal to invest $760 million in a new computerized news reporting and printing system. It is estimated that the new system's state-of-the-art graphics and ability to quickly incorporate late-breaking news into papers will increase 2018 division operating income by $172 million. World Information Group uses a 20% required rate of return on investment for each division. Beg lal PrintDone PrintDone Ent

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