Qrestion.1. ABC Co, has the following financial information for the current fiscal year: \begin{tabular}{l|r|} \hline Sales & 2,000,000 \\ \hline Net lncome & 120,000 \\ \hline Assets & 1,000,000 \\ \hline Mininum Required Return & 10% \\ \hline \end{tabular} Required: 1. Compute ABC Co's Return on Inventment uing the DuPont formula. 2. Compute the cempanys Residual Iacome. 3. How could the company's Retrun on Investment be increased? Qrestion 2t DEF Co, is considering replacing an old machine with a new machine. The fiancial details are as follows: \begin{tabular}{|l|l|r|} \hline Old Machine: & Cost & 50,000 \\ \hline & Selling Price & 20,000 \\ \hline & Total operating \\ & Costs over 6 years & 240,000 \\ \hline & & \\ \hline New Machine: & Cost & 100,000 \\ \hline & Total operating & 310,000 \\ \hline & Costs over 6 years & \\ \hline \end{tabular} Required: 1. Calculate the Differential Income (Loss) of replacing the Old Machine (Alt 1) with the New Machine (Alt 2). 2. Should the Otd Machine be replaced and why? Queation 3: XYZ Co. is consiering the purchase of a new assemly line with the following details: Required: 1. Calculate the Net Present Value of the preject assuming a 10% required rate of retara. Present value factors at 10% are as follows: \begin{tabular}{|l|l|} \hline Year I & 0.909 \\ \hline Year 2 & 0.826 \\ \hline Year 3 & 0.751 \\ \hline Year 4 & 0.683 \\ \hline \end{tabular} 2. Sheuld XYZ aceept the project and why