Intel has introduced a new line of processors. The first-year financial results are presented below.

Income Statement for the Year Ended December 31, 2023:

• Sales revenue: $5,500,000
• Cost of goods sold: $3,500,000
• Gross margin: $2,000,000
• Operating expenses: $900,000
• Depreciation expense: $300,000
• Operating income: $800,000
• Non-operating items: $50,000
• Net income: $750,000

Balance Sheet as of December 31, 2023:

• Assets:
  • Cash: $250,000
  • Accounts receivable: $800,000
  • Merchandise inventory: $500,000
  • Equipment (less accumulated depreciation): $1,500,000
  • Total assets: $3,050,000
• Liabilities:
  • Accounts payable: $600,000
  • Notes payable: $800,000
  • Total liabilities: $1,400,000
  • Stockholders' equity: $1,650,000

Required:

1. Calculate the ROI for Intel’s new processors.
2. Intel’s headquarters has $250,000 available for investment, aiming for a 12% ROI. Calculate the new ROI if the funds are invested at an ROI of 15%.
3. Assess the impact on ROI if the investment yields only 8%.
4. Discuss the strategic advantages and potential risks of investing additional funds in the new processors.