(Please show your work and organize/structure your responses appropriately in Excel) Ranch Inc. evaluates and measures the performance of their division manager through ROI. For existing operations, the division's projections for the coming year are as follows: Sales Expenses Segment income $25,000,000 $(22,500,000) $2,500,000 Revenue and Sales Cash sales Sales on account Uncollectible sales $10,000,000 $18,000,000 $3,000,000 Expenses Sales expense $7,500,000 Salary expenses $5,000,000 Wage expenses $3,000,000 Depreciation expenses (non-cash expense) $2,500,000 Administration expenses $4,500,000 Information for the assets: Machine A $4,000,000 Stamping machine $2,500,000 Counter $3,500,000 Quality verifier machine $5,000,000 Please note that the amounts presented are gross book value. Based on the manager's projections, she is evaluating the investment of a new product line that could increase 2020 income by $250,000. She does have the cost of the investment (below) and the company has a 12% cost of capital. Required: A. First, calculate the ROI for 2020 without the new investment. Then, assuming the new product line requires an investment of $1.2 million, calculate the revised projected 2020 ROI for the division with the new investment. Would the manager accept or reject the investment? B. How much would the investment have to cost for the manager to be indifferent about making it? C. What would you advise and/or recommend to Ranch decision-makers based on the information you calculated above