Please answer question attached

1. (15 pts) The following investment opportunities are available to an investment center manager: Project A B C D Initial Investment $800,000 100,000 300,000 400,000 Annual Earnings $90,000 20,000 25,000 60,000 Assume all projects are substantially equal risks. Required: a. Calculate the return on investment and residual income (10% W.A.C.C.) for each project. b. If the investment manager is currently making a return on investment of 16 percent, which project(s) would the manager want to pursue, assuming his/her compensation is directly tied to average return on investment? Explain. c. If the cost of capital is 10 percent and the annual earnings approximate cash flows excluding finance charges, which project(s) should be chosen? Explain