Reference no: EM132944790

Mina Company has two divisions A and B which are both classified as investment centers. Net income and total assets for each division are shown below:

                                   A                  B

Net Income             P 150 000         P 250 000

Total Assets             600 000            1 250 000

Problem a. Evaluate the two divisions according to;

1. Net Income

2. ROI

Problem b. Assume the desired rate of return for Mina is 19%, evaluate the two divisions according to residual income;