Linda Williams operates a popular summer camp for elementary school children. Projections for the current year are as follows:

Sales revenue		$7,320,000
Operating income		$641,500
Average assets		$3,664,000

The camps weighted-average cost of capital is 11%, and Linda requires that all new investments generate a return on investment of at least 15%. The camps current tax rate is 30%. At last weeks advisory board meeting, Linda told the board that she had up to $70,000 to invest in new facilities at the camp and asked them to recommend some projects. Today the boards president presented Linda with the following list of three potential investments to improve the camp facilities.

		Playground			Swimming Pool			Gym
Incremental operating income		$ 1,690			$ 6,750			$ 4,080
Average total assets		13,000			37,500			24,000

(a)

Calculate the return on investment, residual income, and economic value added for each of the three projects. (Enter negative amounts using either a negative sign preceding the number, e.g. -45 or parentheses, e.g. (45). Round Return on Investment answer to 2 decimal places, e.g. 15.25 & all other answers to 0 decimal places, e.g. 15 or 15%.)

		Playground			Pool			Gym
Return on Investment		enter percentages rounded to 2 decimal places	%		enter percentages rounded to 2 decimal places	%		enter percentages rounded to 2 decimal places	%
Residual Income		$enter a dollar amount rounded to 0 decimal places			$enter a dollar amount rounded to 0 decimal places			$enter a dollar amount rounded to 0 decimal places
Economic Value Added		$enter a dollar amount rounded to 0 decimal places			$enter a dollar amount rounded to 0 decimal places			$enter a dollar amount rounded to 0 decimal places