Show your computation Division Y of Steak Limited produced the following results in the last financial year. Profit 200,000 Gross capital employed 1,000,000 For evaluation purposes all divisional assets are valued at original cost. 

A proposed project will increase the division's profit by 22,000, but will require gross assets to increase by 100,000. Steak Limited imposes a 20% capital charge on its divisions. Will the evaluation criteria of return on investment (ROI) and residual income (RI) motivate division Y's managers to accept the project? Elaborate your answer