OMalley Company requires a return on capital of 15 percent. The following information is available for 2018:

	Division X		Division Y		Division Z
	Book	Current	Book	Current	Book	Current
Sales	$200,000	$200,000	$400,000	$400,000	$600,000	$600,000
Income	24,000	20,000	32,000	34,000	37,500	39,000
Assets	120,000	160,000	180,000	200,000	450,000	435,000

Required:

a.	Compute return on investment using both book and current values for each division. (Round answer to three decimal places.)
b.	Compute residual income for both book and current values for each division.
c.	Does book value or current value provide the better basis for performance evaluation?
d.	Which division do you consider the most successful?