ClamShell Security (CSS) is a division of a large, listed company, X3Cate Limited (X3L). The CSS Division produces software products to protect customers computers from infection from computer viruses and other malware. The sales of its products have been growing over the last few years as its products become more accepted in the market. The Board of X3L want to introduce a new product line that would specifically protect against Ransomware, a new security threat, particularly business customers. Each Divisional Manager can earn large bonuses on top of their base salaries if they maintain Return on Investment greater than 25% otherwise the bonus payments are halved.

The following information is for the year that has just ended related to the CSS Division performance:

Profit percentage (Return on Sales):	30%
Sales revenue:	$15 000 000
Average capital invested	$18 000 000

Additional information:

The Manager of the CSS Division has been reviewing the proposed additional revenue and costs to launch the new anti-ransomware product and makes the following financial estimates for the following year:

New projected profit percentage:	25%
New TOTAL projected sales revenue:	$25 000 000
New level of Average Invested capital:	$31 250 000

Required: Taking into account the additional information, calculate the projected ROI for the expanded CSS business if the proposed sales and cost structure occurs (1 mark)