Larsen Corporations reported R&D expense, reported net income before and after R&D expense, and reported net operating assets for the years 2010 through 2015 are as follows (all figures are in $). All the figures reported in the table below are per GAAP.

Year	Net Income Before R&D Expense	R&D Expense	Net Income After R&D Expense	Net Operating Assets at the End of the Year
2010	280	120	160	1,020
2011	300	90	210	1,040
2012	330	100	230	1,050
2013	300	96	205	1,060
2014	270	80	190	1,080
2015	275	200	75	1,100

Larsen currently uses Residual Income to measure performance. Assume that the R&D expenditures (shown above) were made at the beginning of the respective years and that R&D has a useful life of 4 years. Larsens cost of capital is 12% per year. Assume that the Residual Income capital charges are based on the invested capital at the end of the year. Assume that Larsen does not have any liabilities (i.e., all assets are financed with equity). Ignore the effect of taxes.

Part A: Calculate Larsens ROI for 2015 (rounded to the nearest %)

a. 5%

b. 6%

c. 7%

d. 12%

Part B: Calculate Larsens Residual Income for 2015 (rounded to the nearest dollar).

a. 275

b. 75

c. 143

d. -57