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	$ 9,000	$ 7,100
Divisional income	937	1,105
Divisional investment	7,150	8,600
Current liabilities	320	360
R&D	360	460

Required:

Evaluate the performance of the two divisions assuming Houghton uses return on investment (ROI).

Note: Enter your answers as a percentage rounded to 2 decimal places (i.e., 32.13).

A. ROI of Alloys Division

B. ROI of Petro Division

C. Which Division Performed Better