Compute and analyze the Return on Investment for project A

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Question - The following summary information is available regarding CPL Plc.

CPL profit plan For the year ending Dec. 31, 2018

Sales revenue $5,600,000

Net income $896,000

Total Assets $7,000,000

Operating Assets $4,500,000

Total Liabilities $2,100,000

WACC 25%

Tax rate 20%

Return from project A $248,000

Cost of project A $196,000

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)

Reference no: EM132793251

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