Review the data below

Fee charged for new client services $$250$

Estimated new clients $325$

Cost of providing the service

$$186$

Investment in additional equipment

$$287,000$

Company's minimum required rate of return

$10\%$

Required:

a$.$ What are the projected sales dollars for the new service?

b$.$ What is the net operating income?

c$.$ Calculate residual income.

d$.$ Calculate the return on investment $($ROI$)$

e$.$ Is this a good investment for the company? Why or why not?

Show your calculations in the answer box. You can insert a table to organize your work.