Fulcrum Inc. has provided you with the following results for the first three quarters of 2021. The results have been poor and the general manager, Carlos Ortiz, who is evaluated on the basis of improvement in ROI from the previous period, is concerned that he will receive a poor performance evaluation. The company's target rate of return is 18%. Data for the first 3 quarters are: Sales $4,500,000 Operating income $1,250,000 Total Assets $8,900,000 Carlos is considering the following changes in the last quarter to try to improve the current ROI. Option A: Sell off excess land with a book value of $400,000 for $600,000.

Option B: Acquire a new machine for $300,000, It is expected to gererate operating income of $75,000 in the last quarter.

Option C: Paid off $400,000 of long-term debt to save $12,000 of interest expense

Option D: Increase collection efforts which will result in collecting $50,000 of overdue accounts receivable.

Required: 1 Calculate RI for the first 9 months. 2 Calculate the effect each of these independent options would have on the company's ROI. Use total assets, not average assets. For each of these options, indicate whether the company should implement them based solely on ROI.