Rundle Technologies, Inc. has three divisions. Rundle has a desired rate of return of 12.0...
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Rundle Technologies, Inc. has three divisions. Rundle has a desired rate of return of 12.0 percent. The operating assets and income for each division are as follows: Operating Operating Income $107,580 100,440 65,760 $273,786 Divisions Printer Copier Assets 660,000 930,000 480,000 $2,970,000 Total Rundle headquarters has $132,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following ROls: Divisions Printer Copier Expected ROIs for Additional Investments 13 . 5% 12. 5% 11.5% 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 $132,000 of investment funds? e. Based on ROI, which division manager would be least likely to accept the $132,000 of investment funds? d. Which division offers the best investment opportunity for Rundle
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