Ceramics, a division of Gammaro $$Corporation$,$ has an operating income of $ $82$ comma $000$ and total assets of $ $410$ comma $000.$ The required rate of return for the company is $9\%.$ The company is evaluating whether it should use return on investment$($ROI$)$ or residual income$($RI$)$ as a measurement of performance for its division managers. The manager of Kyler Ceramics has the opportunity to undertake a new project that will require an investment of $ $164$ comma $000.$ This investment would earn $ $21$ comma $320$ for the company.$$

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Part $1$

Requirement $1.$ What is the original return on investment$($ROI$)$ for Kyler Ceramics$($before making any additional$$ investment$)?$

First determine the formula to calculate the ROI.

Operating income

$-$:

Total assets

$=$

ROI

Part $2$

$($Enter the percentage to two decimal$$ places.$)$

The original return on investment $($ROI$)$ for Kyler Ceramics is

$20$

$\%.$

Part $3$

Requirement $2.$ What would the ROI be for Kyler Ceramics if this investment opportunity were$$ undertaken? Would the manager of the Kyler Ceramics division want to make this investment if she were evaluated based on$$ ROI? Why or why$$ not? $($Enter the percentage to two decimal$$ places.$)$

If this investment opportunity were undertaken, the ROI would be

$\%.$