14.42 Du Pont ROI, RI and EVA Global Enterprises is a division of an international conglomerate. The following information relates to its performance. Target profit margin 12% Target asset turnover 1.34 times Charge for capital 14% Weighted average cost of capital 12.40% Income tax rate 30% Investment $22,600,000 Total assets $28,050,000 Current liabilities $820,000 Sales $23,200,000 Variable costs $8,960,000 Fixed costs $10,460,000 Allocated common and corporate costs $1,636,000 Required Calculate the divisional margin for the year. Calculate the Du Pont ROI and evaluate the performance of Global Enterprises in relation to the expected performance. Calculate the RI. Calculate the EVA. Why are the RI and the EVA different? Discuss the appropriateness of the use of ROI, RI and EVA as performance measures