mcq

At the beginning of 20X2, a division has capital employed, consisting of non-current assets of $2 million (at
net book value) and working capital of $0.2 million. These are expected to earn a profit in 20X2 of $0.5
million, after depreciation of $0.4 million. A new machine will be installed at the beginning of 20X2. It will
cost $0.8 million and will require an additional $0.1 million in working capital. It will add $0.35 million to
divisional profits before deducting depreciation. This machine will have a four-year life and no residual value:
depreciation is by the straight-line method. When calculating ROI, capital employed is taken at its mid-year
value.
What is the expected ROI of the division in 20X2?
21.7%
23.2%
24.1%
26.0%

sir i dont understand the calculation of the capital employed at the end of the 20X2 how they have calculated the 1.6m