Residual income (RI) and return on investment (ROI) are common measures that capture related but distinct performance constructs. To highlight the relation between these measures, residual income can be expressed as a function of return on investment and investment base (i.e., project or division size as proxied by assets employed): residual income = (return on investment hurdle rate) *assets employed In the chart below, we plot this function. Line A charts the Rls for projects where assets employed = $400,000. Line B charts the Rls for projects where assets employed = $200,000. The hurdle rate, as shown below, is 0.10. Hurdle rate Breakeven point Please select the statement(s) that incorrectly describe how project size impacts the relationship between return on investment and residual income. Note: multiple answers possible. When return on investment > hurdle rate, residual income may be positive or negative, depending on the size of the project. Residual income is purely a function of return on investment and is unrelated to project size. C] For a given return on investment, a smaller project produces a positiveegative residual income that is greater in magnitude