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Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $1,208,000 895,000 $ 313,000 $1,040,000 Stream Division $1,803,000

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Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $1,208,000 895,000 $ 313,000 $1,040,000 Stream Division $1,803,000 1,295,000 $ 508,000 $1,590,000 The company's hurdle rate is 7.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent situation that follows: a. Operating income increases by 11 percent. b. Operating income decreases by 9 percent. c. The company invests $255,000 in each division, an amount that generates $103,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.26 percent. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req 20 Req 2D Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) River Division % Stream Division % ROI Residual Income (Loss) River Division % Stream Division % ROI Residual Income (Loss) River Division % Stream Division % ROI Residual Income (Loss) River Division Stream Division % % ROI Residual Income (Loss) Stream Division River Division % ROI % Residual Income (Loss)

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