Northern Division has a required rate of return by corporate headquarters of 20%. The weighted average cost of capital is 12%. You are given the following information for Bellingham's operations for a two-year period:

2015

2014

Current assets

$ 50,000

$ 60,000

Long-term assets

200,000

204,000

Accumulated amortization

60,000

44,000

Current liabilities

40,000

20,000

Long-term debt

100,000

140,000

Operating income for the year

24,000

27,000

Tax rate

35%

35%

The ROI for 2015 was:

A.11.71%

B.20.0%

C.3.7%