PA$10-1($Algo$)$ Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Assets, Hurdle Rate on Each $[$LO $10-4,10-5]$

Coolbrook Company has the following information available for the past year:

The company's hurdle rate is $7\mathrm{.}51$ percent.

Required:

$1.$ Calculate return on investment $\backslash ((\backslash$mathrm$\{$ROI$\})\backslash )$ and residual income for each division for last year.

$2.$ Recalculate ROI and residual income for each division for each independent situation that follows:

a$.$ Operating income increases by $11$ percent.

b$.$ Operating income decreases by $11$ percent.

c$.$ The company invests $\backslash (\backslash$$ $251,000\backslash )$ in each division, an amount that generates $\backslash (\backslash$$ $102,000\backslash )$ additional income per division.

d$.$ Coolbrook changes its hurdle rate to $5\mathrm{.}51$ percent.

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

Req $1$

Req $2$A

Req $2$C

Calculate return on investment $($ROI$)$ and residual income for each division for last year.

Note: Enter your ROI answers as a percentage rounded to two decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $\backslash (12\mathrm{.}34\backslash \%\backslash ).)$