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The following summary information is available regarding CPL Plc. CPL Plc. Profit Plan For the year ending Dec. 31, 2020 Sales Revenue $9,600,000 Net Income
- The following summary information is available regarding CPL Plc.
CPL Plc. | ||
Profit Plan |
| |
For the year ending Dec. 31, 2020 | ||
Sales Revenue | $9,600,000 | |
Net Income | $2,400,000 | |
Total Assets | $8,400,000 | |
Operating Assets | $2,400,000 | |
Total Liabilities | $2,400,000 | |
WACC | 22% | |
Tax rate | 30% | |
Return from Project A | $282,000 | |
Cost of project A | $232,000 | |
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)
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