Pinnacle Inc. has several departments. The following financial statements are for the department called "Nu Department."

Nu Department Income Statement for the Year Ended March 31, Year 18:

• Sales Revenue: $650,000
• Cost of Goods Sold: $390,000
• Gross Margin: $260,000
• Operating Expenses: $140,000
• Depreciation Expense: $70,000
• Operating Income: $50,000
• Nonoperating Income: $55,000
• Loss on Sale of Assets: $35,000
• Net Income: $70,000

Nu Department Balance Sheet as of March 31, Year 18:

• Cash: $80,000
• Accounts Receivable: $115,000
• Inventory: $130,000
• Assets (less accumulated depreciation): $250,000
• Total Assets: $575,000
• Accounts Payable: $90

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,000

• Notes Payable: $100,000
• Stockholders' Equity: $385,000

Required:

1. Calculate the ROI for Nu Department.
2. Pinnacle Inc. has a desired ROI of 26%. Nu Department has an opportunity to invest $500,000 at an ROI of 28%. Calculate the new ROI if the investment is made.
3. Determine the net profit margin for Nu Department.
4. Compute the asset turnover ratio for Nu Department.
5. Evaluate whether Nu Department met the desired ROI after the new investment.