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M10-10 (Algo) Impact of New Investment on ROI, Residual Income [LO 10-4, 10-5) The Western Division of Claremont Company had net operating income of $145,000

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M10-10 (Algo) Impact of New Investment on ROI, Residual Income [LO 10-4, 10-5) The Western Division of Claremont Company had net operating income of $145,000 and average invested assets of $568,000 Claremont has a required rate of return of 13.75 percent. Western has an opportunity to increase operating income by $45,000 with a $96.000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answers to the nearest whole dollar) Current Proposed Project % Return on investment (ROI) Residual Income (1.036)

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