Early in January 2016, Tyler, Inc., acquired a new machine and incurred $11,000 of interest, installation, and overhead costs that should have been capitalized but were expensed. The company earned net operating income of $111,000 on average total assets of $749,000 for 2016. Assume that the total cost of the new machine will be depreciated over 10 years using the straight-line method.

a. Calculate the ROI for Tyler, Inc., for 2016. (Round your answer to 1 decimal place.)

b. Calculate the ROI for Tyler, Inc., for 2016, assuming that the $11,000 had been capitalized and depreciated over 10 years using the straight-line method. (Hint: There is an effect on net operating income and average assets.) (Round your answer to 1 decimal place.)