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M10-10 (Algo) Impact of New Investment on ROI, Residual Income [LO 10-4, 10-5] The Western Division of Claremont Company had net operating income of $136,000

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M10-10 (Algo) Impact of New Investment on ROI, Residual Income [LO 10-4, 10-5] The Western Division of Claremont Company had net operating income of $136,000 and average invested assets of $560,000 Claremont has a required rate of return of 13,50 percent. Western has an opportunity to increase operating income by $41,000 with a $91,000 increase in average invested assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. (Enter your RO answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34% ). Round your Residual Income (Loss) answers to the nearest whole dollar.)

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