For the period just ended, Global Industries' Western Division reported profit of $31.9 million and invested capital of $220 million. Assuming an imputed interest rate of 12%, which of the following choices correctly denotes Western's return on investment (ROI) and residual income? ROI Residual IncomeA.12.0% $(5.5 million)B.12.0% $5.5 millionC.14.5% $(5.5 million)D.14.5% $5.5 millionE.14.5% $26.4 million
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E
Answer: D
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