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Aydin Fisheries operates a chain of budget seafood restaurants as well as its own fishing fleet, which operates off the south coast of Australia. Aydin is structured into three divisions: the Northern Australian division and the Southern Australian division, which manage the restaurants, and the fishing fleet division. Each division operates as a separate stand-alone business and is designated as an investment centre.

The company uses return on investment to evaluate the performance of each division. For the purposes of calculating divisional ROI, invested capital is defined as total assets less current liabilities, and divisional operating profit after tax is used. Each division is required to achieve an ROI of at least 10 per cent after tax. To calculate divisional EVA, the weighted average cost of capital of 8 per cent is used. The company income tax rate is 30 per cent.

The following data relate to financial performance for the last year.

Southern Australian division

Northern Australian division

Fishing fleet division

Operating profit after tax

$ 5 400 000

$1 200 000

$ 900 000

Total assets

52 500 000

6 000 000

25 200 000

Current liabilities

12 000 0000

3 000 000

2 400 000

Required:

1. Calculate the Return on Investment for the three divisions

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