Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below:

	Division
	Asia		Europe		North America
Sales	$	16,000,000	$	18,000,000	$	29,000,000
Average operating assets		4,000,000		6,440,000		11,600,000
Net operating income		560,000		520,000		1,392,000
Minimum required rate of return		14%		10%		16%

Required:

1. Compute the ROI for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations and round your final answers to the nearest whole percent.)

2. Compute the RI for each division.

3. Assume that each division is presented with an investment opportunity that would yield a 13% rate of return.

a. If performance is being measured by ROI, which division(s) will probably accept the opportunity? Reject the opportunity?

b. If performance is being measured by RI, which division(s) will probably accept the opportunity? Reject the opportunity?