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Coolbrook Company has the following information available for the past year: The company's hurdle rate is 7.01 percent. Required: 1. Calculate return on investment (ROI)

image text in transcribed Coolbrook Company has the following information available for the past year: The company's hurdle rate is 7.01 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 8 percent. b. Operating income decreases by 10 percent. c. The company invests $245,000 in each division, an amount that generates $111,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.01 percent

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