For the year 2019, the specialty chemicals division of Freemont and Co., had an asset turnover ratio of 2, return on sales of 20% and total revenues of $600 million. The required rate of return used for residual income calculation by Freemont and Co., is 20%.

Assume that the division has identified a new investment opportunity requiring an investment of $200 million that would yield an additional income of $70 million. If the chemicals division invests in the new project, its overall ROI will be

		13.57%
		36%
		23%
		40%
		38%
		46%