Houghton Chemicals, which started operations one year ago, has two divisions: Alloys and Petro. Both divisions invest heavily in R&D, which is assumed to generate benefits for five years. R&D spending is made uniformly throughout the year. Houghton Chemicals has a cost of capital of 11 percent. Selected financial information for the two divisions (in thousands of dollars) for the year just completed follows: Alloys Petro Sales revenue $ 7,900 $ 6,000 Divisional income 827 995 Divisional investment 6,050 7,500 Current liabilities 210 250 R&D 250 350 Required: Evaluate the performance of the two divisions assuming Houghton uses return on investment (ROI)