Hoosier Industries manufactures a variety of household products. Roy Washburn, head of the companys Hardware Division, has just completed a miserable nine months. If it could have gone wrong, it did. Sales are down, income is down, inventories are bloated, and quite frankly, Im beginning to worry about my job, he moaned. Washburn is evaluated on the basis of ROI. Selected figures for the Hardware Division for the past nine months follow.

Sales	$	8,100,000
Operating income		648,000
Invested capital		9,000,000

In an effort to make something out of nothing and to salvage the current years performance, Washburn was contemplating implementation of some or all of the following four strategies:

a.	Write off and discard $93,000 of obsolete inventory. The company will take a loss on the disposal.
b.	Accelerate the collection of $123,000 of overdue customer accounts receivable.
c.	Stop advertising through year-end and drastically reduce outlays for repairs and maintenance. These actions are expected to save the division $228,000 of expenses and will conserve cash resources.
d.	Acquire two competitors that are expected to have the following financial characteristics:

	Projected Sales			Projected Operating Expenses			Projected Invested Capital
Anderson Manufacturing	$	4,560,000		$	3,700,000		$	8,600,000
Palm Beach Enterprises		6,810,000			6,210,000			7,500,000

Calculate the projected ROI for Anderson Manufacturing and Palm Beach Enterprises.

Should Washburn reject both acquisitions, accept both the acquisitions, acquire Anderson Manufacturing or acquire Palm Beach Enterprises in order to maximize the ROI?