Makinen Division of the Palo Company has an opportunity to invest in a new project. The project will yield an incremental operating income of $73,350 on average invested assets of $900,000. Makinen Division currently has operating income of $425,000 on average invested assets of $4,325,000. Palo Company has a 7% hurdle rate for new projects.

a. What is Makinen Division's ROI before making an investment in the project? b. What is Makinen Division's residual income before making an investment in the project? c. What is Makinen Division's ROI after making the investment in the project? d. What is Makinen Division's residual income after making the investment in the project?