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Question #1 A division of a company is a major subcontractor in the...

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Accounting

Question #1
A division of a company is a major subcontractor in the Southern California area, and during the year this division had earnings before interest and taxes of $7 million. This division has a major investment in machinery, which currently has a book value of $50 million. All divisions in this company use an interest rate of 10%.
(note - do not do any averaging)
Calculate:
return on investment
%
residual income $
Question #2
Calculate the return on investment (ROI) and residual income (RI) for the following divisions. Use a required rate of return of 10%.
Division:
Red
White Blue
Earnings before interest & taxes (EBIT) $8
$12,$10 million
Average operating assets
$50
$100,$80 million
Return on investment
%
%,%
Residual income
$
$
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