Calculate ROI, Residual Income, and EVA for Each of the Investment

question 80

Essay

Calculate ROI, residual income, and EVA for each of the investment centers listed. (Round to two decimal places.)
$\begin{array}{lrr} & \text { Investment Center 1 } & \text { Investment Center 2 } \\\text { Pretax Operating income } & \$ 50,000 & \$ 70,000 \\\text { Assets invested } & 125,000 & 180,000 \\\text { Income taxes } & 15,000 & 21,000 \\\text { Cost of capital in dollars } & 13,000 & 25,000 \\\text { Desired ROI } & 56 \% & 48 \%\end{array}$

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Definitions:

Genetics

The investigation into genetic inheritance and the differences in traits passed down through generations.

Social Environment

The immediate physical and social setting in which people live or in which something happens or develops, including the culture that the individual is educated or lives in.

Physiological Forces

Biological or bodily drives and processes that influence behavior and mental states.

Unconditional Positive Regard

A concept in psychology that entails accepting and supporting a person regardless of what they say or do.