The Portland Division's operating data for year 2015 is as follows:

Return on investment 12% Minimum required rate of return 10% Average net operating assets $500,000 Sales $1,600,000

Compute the net operating income of 2015.

Compute the margin of 2015.

The division is considering a new investment project with 15% of expected ROI. Should the division take or abandon the project when the performance is evaluated by (1) ROI or (2) Residual income?