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 $ 1,209,000 882,000 $ 327,000 $ 1,130,000 Stream Division $ 1,882,000 1, 292,000 $ 510,000 $1,550,000 The company's hurdle rate is 7.26 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 12 percent. c. The company invests $251,000 in each division, an amount that generates $114,000 additional income per division d. Coolbrook changes its hurdle rate to 5.26 percent