Assume Stuart Modems, Inc., is a division of Gilmore Business Products (GBP). GBP uses ROI as the primary measure of managerial performance. GBP has a desired return on investment (ROI) of 6.10 percent. The company has $250,000 of investment funds to be assigned to its divisions. The president of Stuart is aware of an investment opportunity for these funds that is expected to yield an ROI of 7.50 percent. Income Statement Sales revenue Cost of goods sold Gross margin Sales commission Depreciation expense Administrative expense Net income 750,000 (530,000 S 220,000 (45,000) (10,000) (74,950) $ 90,050 Balance Sheet Assets: Cash Manufacturing equipment, net of accumulated depreciation Office equipment, net of accumulated depreciation Total assete Equity: Common stock Retained earnings Total equity $ 748,050 340,000 42,000 $1,130,050 $1,040,000 90,050 $1,130,050 Required a-1. Calculate the existing ROI for Stuart. a-2. Based on your computations will the President of Stuart accept or reject the $250,000 investment opportunity? c-1. Calculate the estimated residual income of the new investment opportunity. c-2. Based on the residual income would the President of Stuart accept or reject the $250,000 investment opportunity