Division A is currently considering investing in a new project. The project is expected to generate a profit of $100,000 and requires an investment of $500,000. The imputed interest rate is 14%. The company has a strong focus on using Return on Investment (ROI) to measure the Division's performance and to determine end of year bonuses. Details of the division's anticipated profitability if they do not undertake the project is shown below:

Profit $264,000

Invested capital $1,200,000

Required:

a) Calculate the return on investment of Division A if they do not undertake the project (1 mark)