Daniel Jackson, founded by a former vice$-$president of Blossom Industries, has been manufacturing prefabricated houses for the past five years. To compete with Blossom, Daniel also expanded into the precut housing market by acquiring one of its suppliers, Presser Company. After designating Presser as an investment centre, Daniel next decided to use the ROI as a performance measure and to give managers bonuses that are partly based on the ROI. Daniel defines investments as average productive assets and expects a minimum return of $12\%$ before income taxes. Presser's ROI has averaged $16\mathrm{.}5\%$ since it was acquired.

In $2022,$ Presser found an investment opportunity that would have an estimated ROI of $15\%.$ After analyzing the opportunity, Presser's management finally decided not to make the investment because management did not want the division's overall ROI to decrease.

The $2022$ income statement for Presser follows. The division had operating assets of $$26\mathrm{.}25$ million at the end of $2022,$ which was a $5\%$ increase over the $2021$ year$-$end balance.