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2. Residual income (RI) ROI of 22%. with nil residual value. after depreciation. A division with capital employed of 400,000 currently earns a It can

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2. Residual income (RI) ROI of 22%. with nil residual value. after depreciation. A division with capital employed of 400,000 currently earns a It can make an additional investment of 50,000 for a 5 year life The average net profit from this investment would be 12,000 The division's cost of capital is14% What are the residual incomes before and after the investment

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