Harbor Division has total assets (net of accumulated depreciation) of $720,000 at the beginning of year 1. One of the assets is a machine that has a net book value of $62,000. Expecte divisional income in year 1 is $84,000 including $5,500 in income generated by the machine (after depreciation). Harbor's cost of capital is 12 percent. Harbor is considering disposing o the asset today (the beginning of year 1). In answering the following questions, assume that Harbor does not own the machine but has been leasing it for $24,000 annually. Assume also that the machine generates income of $5,500 annually after the lease payment. Harbor can cancel the lease on the machine without penalty at any time. Required: a. Harbor computes ROI using beginning-of-the-year net assets. What will the divisional ROI be for year 1 assuming Harbor retains the asset? (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) Answer is complete but not entirely correct. ROI before disposal 11.9 X % b. What would divisional ROI be for year 1 assuming Harbor disposes of the asset? (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) Answer is complete and correct. ROI after disposal 11.9 % c. Harbor computes residual income using beginning-of-the-year net assets. What will the divisional residual income be for year 1 assuming Harbor retains the asset? Answer is complete but not entirely correct. Residual income before disposal $ (2,400) X d. What would divisional residual income be for year 1 assuming Harbor disposes of the asset for its book value (there is no gain or loss on the sale)? Answer is complete and correct. Residual income after disposal $ (460)