Question 1: Return on investment (ROI), residual income (RI) Generic Motors Corporation has two divisions.

	Division A	Division B
Investment (operating assets)	$200,000	$800,000
Profit	$40,000	$120,000

The required rate of return (cost of capital) is 10% a year. a) Compute return on investment (ROI) for each division. ROI for A = % (if your answer is 9.5%, enter 9.5 without the percent sign) ROI for B = % b) Compute the residual income (RI) for each division. RI for A = $ RI for B = $