Haulage ltd a transport company is planning its future investment strategy. Haulages best projections of profit outcome are depended upon the cost of fuel as shown below.

Annual net income at the following cost per litre

Investment level (Km)	K1,200 (Km)	K1,250 (Km)	K1,300 (Km)	K1,400 (Km)	K1,500 (Km)	K
350	55	52	46	40	30
400	60	58	52	46	35
450	68	63	55	47	35
500	72	68	58	49	34
550	74	67	56	43	30
600	75	64	53	40	25
probability	0.1	0.1	0.4	0.3	0.1

The companys minimum required rate of return is 10% p.a

1. For each level of investment, compute the return on investment (ROI) and the residual income (RI).
2. If the company uses ROI as a measure of performance, determine the optimal level of investment.
3. If residual income is used for assessing performance, determine the optimal investment level.
4. State any two (2) advantages for each of using residual income and ROI as measures of performance.