Question s XYZ Capital Investments is planning to expand by adding a new project in their current operation . Currently XYZ Capital has three divisions , and their required rate of return is 1296 . The new project will require increasing their investment by $20 090 090 and its income by $2 , 500 ,090 Following is the data : Division Operating income Investmen $9000 000 $80 000 000 $21 000.000 $165 000.000 $36000. 000 $295 000 000 Required Compute the current ROI for each division Compute the current residual income for each division Determine the effects after adding the new project to each division's ROI and residual income Compare the result after increasing the investment in part C and explain the financial performance using residual income approach