Westerville Company reported the following results from last year's operations:

sales $ 1,800,000

Variable expenses 740,000

contribution margin 1,060,000

Fixed expenses. 700,800

Net operating income $ 360,000

Average operating assets 1,200,880

At the beginning of this year, the company has a $400.000 investment opportunity with the following cost and revenue

characteristics:

sales. $ 6 00,000

Contribution margin ratio 60 % of sales

Fixed expenses. $ 288,006

The company's minimum required rate of retum is 10%

1- what is last years residual income?

2- what is the residual income of this years investment opportunity?

3-what is the ROI related to this years investment opportunity? (Do not round intermediate calculations)

4- which item(s) in the income statement show above will not affect cash flows?

A) sales

B) variable expenses

C) advertising, salaries, and other fixed out-of-pocket costs expenses

D) depreciation expense

5- what are the projects annual net cash inflows?

6- what is the present value of the projects annual net cash inflows?

7- what is the projects net present value?

8- what is the profitability index for this project?

9- what is the projects internal rate of return?

10- what is the projects payback period?

11- what is the projects simple rate of return for each of the fiver years?