The following summary information is available regarding CPL Plc.

CPL plc.

Profit Plan

For the year ending DEC. 31, 2019

Sales Revenue $42,000,000

Net Income $6,000,000

Total Assets $30,000,000

Operating Assets $9,000,000

Total Liabilities $9,000,000

WACC 22%

Tax Rate 30%

Return from project A $375,000

Cost of project A $325,000

Required: Compute and analyze the:

-Return on Investment (ROI) for project A

-Return on Equity (ROE) and its components for the company.

-Residual income (RI)