a.Thefollowing summary information is available regarding CPL Plc.

CPL Plc.

Profit Plan

For the year ending Dec. 31, 2019

Sales Revenue

$ 4,800,000

Net Income

$ 1,200,000

Total Assets

$ 6,000,000

Operating Assets

$ 3,800,000

Total Liabilities

$ 2,000,000

WACC

25%

Tax rate

20%

Return from Project A

$ 63,500

Cost of project A

$ 50,000

Required: Compute and analyze the:

-Return on Investment (ROI) for project A

-Return on Equity (ROE) and its components for the company.

-Residual income (RI)