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

question 31

Essay

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

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Definitions:

Inches

a unit of length in the Imperial and U.S. customary measurement systems, equivalent to 1/12 of a foot.

Second Birthday

The celebration of the second anniversary of a person's birth.

Malnutrition

A condition resulting from an inadequate or unbalanced intake of nutrients, leading to various health issues.

Percentile

A statistical measure indicating the value below which a given percentage of observations in a group of observations fall.