Selona.inc had total Assets at the start of 2020 of $600,000 and Total Assets at the end of 2020 of $800,000.

Operating Income for 2020 was $175,000.

The firm has a required reate of return on total assets of 10%

What is the Return on Investment (ROI) and Residual Income (RI) for the firm for 2020. Ignore Taxation.

Select one:

a. ROI=12.5%; RI = $110,000

b. ROI=8%; RI = $100,000

c. None of these answers

d. ROI=25%; RI = $105,000

e. ROI=5%; RI = $6,000