Req $1$

Req $2A$

Req $2B$

Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases

by $9$ percent.

Note: Enter your ROI answers as a percentage rounded to two decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%.$Coolbrook Company has the following information available for the past year:

The company's hurdle rate is $7\mathrm{.}01$ percent.

Required:

Calculate return on investment $($ROI$)$ and residual income for each division for last year.

Recalculate ROI and residual income for each division for each independent situation that follows:

a$.$ Operating income increases by $9$ percent.

b$.$ Operating income decreases by $11$ percent.

c$.$ The company invests $$248,000$ in each division, an amount that generates $$110,000$ additional income per division

d$.$ Coolbrook changes its hurdle rate to $5\mathrm{.}01$ percent.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Req $2A$

Calculate return on investment $($ROI$)$ and residual income for each division for last year.

Note: Enter your ROI answers as a percentage rounded to two decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%.$