Mako Industries is considering changes in its working capital policies to improve its cash flow cycle. Mako's sales last year were $5.0 million (all on credit), and its net profit margin was 10%. Its inventory turnover was 6.0 times during the year, and its DSO was 32 days. Its annual cost of goods sold was $3.85 million. The firm had fixed assets totaling $725,000. Mako's payables deferral period (AP/(COGS/365)) is 55 days. Assume Mako holds $0 cash and marketable securities.

Suppose Mako's managers believe the annual inventory turnover can be raised to 8 times without affecting sale or profit margins. What would Mako's ROA have been if the inventory turnover had been 8 for the year?