The division of a company has an opportunity to invest in a new project. The project will yield an incremental operating income of $$36,250$ on average invested assets of $$455,000.$ The division currently has net operating income of $$225,000$ on average invested assets of $$2,025,000.$ The company requires a $5\%$ rate of return on new projects.

Required:

a$.$ What is the division's ROI before making an investment in the project?

b$.$ What is the division's residual income before making an investment in the project?

c$.$ What is the division's ROI after making the investment in the project?

d$.$ What is the division's residual income after making the investment in the project?

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

Required $A$

Required B

Required C

Required D

What is the division's ROI before making an investment in the project?

Note: Round percentage to $2$ decimals.

Return on Investment

$11\mathrm{.}11\%$