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The following summary information is available regarding XYZ Plc. XYZ Plc. Profit Plan F or the year ending Dec. 31, 20 20 Sales Revenue $

The following summary information is available regarding XYZ Plc.

XYZ Plc.

Profit Plan

For the year ending Dec. 31, 2020

Sales Revenue

$12,600,000

Net Income

$3,720,000

Total Assets

$9,400,000

Operating Assets

$3,400,000

Total Liabilities

$3,200,000

WACC

21.6%

Tax rate

10%

Return from Project A

$328,000

Cost of project A

$273,000

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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b. The following summary information is available regarding XYZ Plc. XYZ Plc. Profit Plan For the year ending Dec. 31, 2020 Sales Revenue $12,600,000 Net Income $3,720,000 Total Assets $9,400,000 Operating Assets $3,400,000 Total Liabilities $3,200,000 WACC 21.6% Tax rate 10% Return from Project A $328,000 Cost of project A $273.000 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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