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P13.1 (ROI and RI) The Clarity Division of Mega Glass Company has an investment of $1,500,000 and currently generates a net profit of $112,500 per

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P13.1 (ROI and RI) The Clarity Division of Mega Glass Company has an investment of $1,500,000 and currently generates a net profit of $112,500 per year. Clarity has proposed an additional investment of $1,000,000, which is expected to return an annual profit of $90,000. Mega Glass is concerned that Clarity is not recovering the group's cost of capital of 8%

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