Coolbrook Company has the following information available for the past year:

	River Division			Stream Division
Sales revenue	$	1,206,000		$	1,805,000
Cost of goods sold and operating expenses		893,000			1,291,000
Net operating income	$	313,000		$	514,000
Average invested assets	$	1,090,000		$	1,510,000

The companys hurdle rate is 7.26 percent.

c. The company invests $253,000 in each division, an amount that generates $116,000 additional income per division

River Division

ROI_______%

Residual income (loss)______

Stream Division

ROI______%

Residual Income (loss)_______

d. Coolbrook changes its hurdle rate to 5.26 percent.

River Division

ROI_____%

Residual Income (loss)_______

Stream Division

ROI______%

Residual Income (loss)________