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

Sales revenue		$7,680,000
Operating income		$676,000
Average assets		$3,856,000

The camps weighted-average cost of capital is 10%, and Margaret requires that all new investments generate a return on investment of at least 14%. The camps current tax rate is 30%. At last weeks advisory board meeting, Margaret 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 Margaret with the following list of three potential investments to improve the camp facilities.

		Playground			Swimming Pool			Gym
Incremental operating income		$ 1,740			$ 6,750			$ 4,080
Average total assets		14,500			37,500			24,000

Calculate the return on investment, residual income, and economic value added for each of the three projects.