that Excel will recognize the text as a "string of text" instead of another function. From the Excel Simulation below, if in a cell =F(G10>20,"Total cost is High"."Total cost is low") was entered, the formula would output the result of the value_if_tr since the test_condition would be result as true, or in this case the text "Total cost is high". Excel processes the IF functio separating it out into separate parts. First the test_condition - Excel thinks, find cell GI0 and determine if the value is gre than 20. Once Excel determines if the result of that test condition is TRUE or FALSE, it will return the value_it_true or value_Lfalse. Return on Investment (RO) and Residual Income - Excel REVIEW Sign in FILE HOME INSERT PAGE LAYOUT FORMULAS DATA VIEW Calibri 11 A A Paste Alignment Number Conditional Format as Cell Formatting- Table- Styles- BIU- Cels Clipboard Font Styles Adams Corporation evaluates divisional managers based on ROI. Operating A1 11 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: 4 Average required investment Net operating income 2,500,000 400,000 L6 17 Adams Corporation's minimum acceptable rate of return 15% 9 Compute the following: 1 Northern Division ROI for last year 22 3 Northem Division ROI if new product line is added 24 s write an IF statement to determine whether the Northern Division 6 manager will ACCEPT or REJECT the new product line based on ROI. 27 8 Northerm Division residual income for last year 19 10 Northern Division residual income if the new product line is added 12 Write an IF statement to determine whether the Northern Division manager 13 will ACCEPT or REJECT the new product line based on residual income 14 Sheeti

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