Calculate ROI,residual Income,and EVA for Each of the Investment Centers

question 53

Essay

Calculate ROI,residual income,and EVA for each of the investment centers listed.(Round to two decimal places.)
$$\begin{array} { l r r } & \text { Investment Center 1 } & \text { Investment Center 2 } \\\text { Operating income } & \$ 50,000 & \$ 7,000 \\\text { Assets invested } & 125,000 & 180,000 \\\text { Income taxes } & 15,000 & 21,000 \\\text { Cost of capital in dollars } & 13,000 & 25,000 \\\text { Desired ROI } & 56 \% & 48 \%\end{array}$$

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Definitions:

Light Waves

Electromagnetic waves that are visible to the human eye, responsible for the phenomenon of sight.

Violet

A color at the end of the visible spectrum of light, next to blue and opposite of red.

Blue

A primary color perceived when light with a dominant wavelength between approximately 450 and 495 nanometers is detected by the eye.

Sensory Responsiveness

The degree to which an individual reacts to or perceives sensory stimuli from the environment.