Richard's, Ananya's, and Div's Company (RAD) has many different divisions within their firm. Assume Zachary Winters, Inc., is a division of RAD. RAD uses ROI as the primary measure of managerial performance. RAD has a desired return on investment (ROI) of 6.50 percent. The company has $290,000 of investment funds to be assigned to its divisions. The president of Zachary is aware of an investment opportunity for these funds that is expected to yield an ROI of 7.80 percent. Income Statement Sales revenue $ 790,000 Cost of goods sold (550,000) Gross margin $ 240,000 Sales commission (49,000) Depreciation expense (14,000) Administrative expense (75,750) Net income $ 101,250 Balance Sheet Assets: Cash Manufacturing equipment, net of accumulated depreciation Office equipment, net of accumulated depreciation Total assets Equity: Common stock Retained earnings Total equity $ 755, 250 380,000 46,000 $1,181,250 $1,080,000 101,250 $1,181,250 Required a-1. Calculate the existing ROI for Zachary. a-2. Based on your computations will the President of Zachary accept or reject the $290,000 investment opportunity? C-1. Calculate the estimated residual income of the new investment opportunity. c-2. Based on the residual income would the President of Zachary accept or reject the $290,000 investment opportunity? Complete this question by entering your answers in the tabs below. Req Al and A2 ReqC1 and C2 Calculate the existing ROI for Zachary. Based on your computations will the President of Zachary accept or reject the $290,000 investment opportunity? (Round your answer to 2 decimal places. (i.e.,.2345 should be entered as 23.45).) a-1. RI a-2. Based on your computations, will the President of Zachary accept or reject the investment opportunity