Division A of BU Group had investments at the year-end of 56 million. These include the cost of new equipment costing 3 million purchased at the very end of the year. This equipment was paid for centrally by BU Groups head office.

The profit of Division A for the year was 7 million (before deducting central head office allocated overheads of 800,000). When assessing the manager performance of Division A, what is the Return on Investment (ROI) for the year?

1. 13.2%

2. 11.7%

3. 12.5%

4. 11.1%