Within a large rental corporation where the commercial rental segment dominated, Sanjay managed the residential rental segment. Sanjay enjoyed taking the underdog role, trying to generate more income and higher returns than corporate expected. The corporate minimum required return was 8%, while its WACC was 7%. He recently became aware of new rental properties in a prime location. He assumed he'd be able to secure two key rental properties in his target area. He considered where his division stood in terms of profitability and asset position at year-end, and created a projection for the next year as follows. Sales Gross margin Operating income After-tax operating income Operating assets Total assets Current liabilities Current Year-End $650,000 290,000 140,000 100,800 200,000 Projected Next Year $800,000 405,000 195,000 140,400 270,000 Calculate the ROI for Sanjay's residential division at the end of the current year and at the end of the following year, per his projections (where operating assets are considered investments). Assume that Sanjay is evaluated on generating a positive- trending ROI. (Round answers to 2 decimal places, e.g. 15.25%.)

Within a large rental corporation where the commercial rental segment dominated, Sanjay managed the residential rental segment. Sanjay enjoyed taking the underdog role, trying to generate more income and higher returns than corporate expected. The corporate minimum required return was 8%, while its WACC was 7%. He recently became aware of new rental properties in a prime location. He assumed he'd be able to secure two key rental properties in his target area. He considered where his division stood in terms of profitability and asset position at year-end, and created a projection for the next year as follows. (a) Your answer is partially correct. Calculate the ROI for Sanjay's residential division at the end of the current year and at the end of the following year, per his projections (where operating assets are considered investments). Assume that Sanjay is evaluated on generating a positivetrending ROI. (Round answers to 2 decimal places, e.g. 15.25\%.) Current ROI % Projected ROI %