Global Enterprises operates several divisions. The following financial statements are for the division called "Kappa Division."

Kappa Division Income Statement for the Year Ended September 30, Year 11:

• Sales Revenue: $300,000
• Cost of Goods Sold: $180,000
• Gross Margin: $120,000
• Operating Expenses: $50,000
• Depreciation Expense: $20,000
• Operating Income: $50,000
• Nonoperating Income: $20,000
• Loss on Sale of Equipment: $8,000
• Net Income: $62,000

Kappa Division Balance Sheet as of September 30, Year 11:

• Cash: $35,000
• Accounts Receivable: $55,000
• Inventory: $70,000
• Equipment (less accumulated depreciation): $100,000
• Total Assets: $260,000
• Accounts Payable: $30,000
• Notes Payable: $40,000
• Stockholders' Equity: $190,000

Required:

1. Compute the ROI for Kappa Division.
2. Global Enterprises has a target ROI of 18%. Kappa Division has a chance to invest $120,000 at an ROI of 20%. Calculate the new ROI if the investment is made.
3. Determine the net profit margin for Kappa Division.
4. Calculate the asset turnover ratio for Kappa Division.
5. Evaluate whether Kappa Division met the desired ROI after the new investment.