34. (6 points) The manager of Division of X is considering the purchase of new equipment to replace an out-of-date machine. Currently, Division X has assets of $8,000,000 and operating income of $1,200,000. The new equipment is expected to cost $1,000,000; and is expected to increase operating income by $100,000 each year. The company's required rate of return on investments is 12.0%. Carry calculations to two decimals. a. Calculate the current ROI for Division X? b. Calculate Division X's ROI if the new investment is undertaken? c. Suppose the manager of Division X is compensated with a base salary plus a bonus based on Division X's ROI. Is the Division manager likely to invest in the new equipment? Explain why or why not.