Freemont Ltd. is a subsidiary of LAN Corporation. The management bonuses and divisional performance is based on return on investment (ROI). Freemont reported average operating assets of $10,000,000 for 2016 . The parent company's policy is to approve only those investments that yield a minimum rate of return of 14%. LAN's historical average ROI across all of its divisions has ranged between 14% and 17%. During 2016, Freemont rejected a project that had a cost of $2,500,000 and would have added $400,000 to the company's income each year. This project was never sent to LAN Corporation for approval. For 2016, Freemont Ltd. reported operating income as follows: Required a) Explain why the project was rejected by Freemont Company's managers. (Provide detailed supporting calculations and explanation). (4 marks) b) Briefly explain whether you think the project should have been accepted. (1 marks) c) Determine the Residual Income (RI) for Freemont Ltd. based on the current income statement. (1 marks) d) Determine the Residual Income (RI) for the rejected project only. (1 marks) e) Determine the Residual Income (RI) if the project was accepted. (1 marks) f) Suggest which measure of performance is preferred by the organization and how would the organization motivate the managers to accept that measure. (2 marks)