Coolbrook company has the following information avaiable for past year. River division Sales Revenue - $1,200,000 Cogs and operating expenses - 897,000 net operating income- 303,000 average invested assets- $1,110,000 Stream division sales revenue- $1,806,000

cogs and operating expenses- 1,290,000 net operating income- $516,000 Averafe invested assets- $1,440,000 The company's hurdle rate is 6.51 percent. ---------------------------------------------------------------------------- The comapny invest $257,000 in each division, an amount that generates $102,000 additional income per division.

ROI = Residual income = ------------------------------- Coolbrook changes it hurdle rate to 4.51 percent. ROI= Residual income=