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Pls answer below questions with full workings

Please answer parts a to e for the question above.

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a) Calculate the current ROI of the handheld electronics division and the ROI of the division if Touchscreen is acquired.

b) What is the likely reaction of divisional management towards the acquisition? Why?

c) What is the likely reaction of Sparkzs corporate management to the acquisition? Explain why.

d) Would the handheld electronics division be better off if it did not upgrade the operation of Touchscreen to Sparkzs standards? Show calculations to support your answer.

e) Assume that Sparkz uses residual income to evaluate performance and desires a minimum required rate of return of 12 per cent on invested capital. Calculate the current residual income of the division and the divisions residual income if Touchscreen is acquired. Will divisional management be likely to change its attitude towards the acquisition? Explain why.

ROI and residual income; evaluation of new investment: retailer LO13.1,13.2,13.3,13.4 Sparkz is a retailer of electrical products and has four divisions. At the end of each year the four divisional managers are evaluated and bonuses are awarded based on ROI. Last year, the company as a whole produced an ROI of 13 per cent. During the past week, management of the company's handheld electronics division was approached about the possibility of buying the operations of a competitor, Touchscreen, which wished to cease its retail operations. The following data relate to recent performance of the handheld electronics division and Touchscreen. If the acquisition occurs, the operations of Touchscreen will be absorbed into the handheld electronics division. The operations of Touchscreen will need to be upgraded to meet the high standards of Sparkz, which would require an additional $562500 of invested capital. ROI and residual income; evaluation of new investment: retailer LO13.1,13.2,13.3,13.4 Sparkz is a retailer of electrical products and has four divisions. At the end of each year the four divisional managers are evaluated and bonuses are awarded based on ROI. Last year, the company as a whole produced an ROI of 13 per cent. During the past week, management of the company's handheld electronics division was approached about the possibility of buying the operations of a competitor, Touchscreen, which wished to cease its retail operations. The following data relate to recent performance of the handheld electronics division and Touchscreen. If the acquisition occurs, the operations of Touchscreen will be absorbed into the handheld electronics division. The operations of Touchscreen will need to be upgraded to meet the high standards of Sparkz, which would require an additional $562500 of invested capital

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