Kingsley and Alexander inc. (KAl), has two transportation departments. One provides transportation services to the public and the other provides charter services for tourists. The transportation services for the public is called PTS and the other is called CTS. The following information relates to the departments; PTS Total assets $2,000,000 Current liabilities 500,000 Operating income 400,000 CTS $10,000,000 3,000,000 1,500,000 Time lett2.40 son calculate the ROI for each unit [2 marks] KAI has used Residual Income as a measure of management performance, the variable it wants a manager to maximize. Using this criterion, what is the RI for each unit using the required rate is 12%. [2 marks] i) KAl uses two sources of funds: Long-term debt in the form of debentures with a market value of $3,500,000 and interest rate of 10%, and equity with a market value of $3,500,000 at a cost of equity of 14%. The tax rate is currently 30%. Using the calculated the weighted average cost ot capital (WACC) of 10.5% to calculate the EVA for each department. [4 marks)