PLEASE SHOW DETAILED WORK.

Harbor Division has total assets (net of accumulated depreciation) of $723,000 at the beginning of year 1. Harbor also leases a machine for $24,000 annually. Expected divisional income in year 1 is $85,000 including $5,300 in income generated by the leased machine (after the lease payment). Harbor's cost of capital is 9 percent. Harbor can cancel the lease on the machine without penalty at any time and is considering disposing of it today (the beginning of year 1). 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 leased machine? (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) b. What would divisional ROI be for year 1 assuming Harbor disposes of the leased machine? (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) 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 leased machine? d. What would divisional residual income be for year 1 assuming Harbor disposes of the leased machine? Answer is complete but not entirely correct. a. % % ROI before disposal ROI after disposal Residual income before disposal Residual income after disposal 11.8 11.4 $ 19,930 $ 16,790 c. d