ZIL Inc. operates two divisions, which are treated as investment centers. Data for each division for Year 4 are as follows (in '000s):
....................Division A ..................Division B
Net income ........$ 65,000 ....................$140,000
Total assets....... $400,000.................... $850,000
The company's required rate of return is 15%. The president wishes to evaluate the performance of these divisions and is not sure whether to use return on investment (ROI) or residual income (RI) as the performance measure.
REQUIRED
Which division performed better based on the ROI and RI performance measures?