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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

  1. 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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