Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets. River Division $1,203,000 881,000 Stream Division $1,801,000 1,289,000 $ 322,000 $1,180,000 $ 512,000 $1,590,000 The company's hurdle rate is 6.76 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent situation that follows: a. Operating income increases by 11 percent. b. Operating income decreases by 9 percent. c. The company invests $256,000 in each division, an amount that generates $112,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.76 percent.