Consider the following sales and operating data for the three divisions of a c

Consider the following sales and operating data for the three divisions of a conglomerate:

Division A

Division C

Division C

Sales

$140000

$180000

$250000

Operating income

$ 5000

$ 6300

$ 14400

Operating assets

$ 20000

$ 35000

$ 90000

Minimum required rate of return

10%

19%

20%

(a) Compute the return on investment (ROI) for each division.

(b) Assume that each division is provided with an investment opportunity that could produce

20 percent return on investment. Which divisions would accept or reject it?