Nova Enterprises has several divisions. The following financial statements pertain to the division named "Epsilon Division."

Epsilon Division Income Statement for the Year Ended June 30, Year 14:

• Sales Revenue: $450,000
• Cost of Goods Sold: $270,000
• Gross Margin: $180,000
• Operating Expenses: $80,000
• Depreciation Expense: $40,000
• Operating Income: $60,000
• Nonoperating Income: $35,000
• Loss on Sale of Assets: $15,000
• Net Income: $80,000

Epsilon Division Balance Sheet as of June 30, Year 14:

• Cash: $50,000
• Accounts Receivable: $75,000
• Inventory: $90,000
• Assets (less accumulated depreciation): $150,000
• Total Assets: $365,000
• Accounts Payable: $50,000
• Notes Payable: $60,000
• Stockholders' Equity: $255,000

Required:

1. Calculate the ROI for Epsilon Division.
2. Nova Enterprises has a desired ROI of 20%. Epsilon Division has a chance to invest $250,000 at an ROI of 22%. Calculate the new ROI if the investment is made.
3. Determine the net profit margin for Epsilon Division.
4. Compute the asset turnover ratio for Epsilon Division.
5. Evaluate whether Epsilon Division met the desired ROI after the new investment.