An investment centre with capital employed of $570,000 is budgeted to earn a profit of $119,700 next?year. A proposed fixed asset investment of $50,000, not included in the budget at present, will earn a?profit next year of $8,500 after depreciation. The company's cost of capital is 15%. What is the budgeted?ROI and residual income for next year, both with and without the investment???
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?ROI? ? ? ? ? ? ? ? ? ? ? ? ?Residual income
? ?Without investment? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ………………..? ? ? ? ? ? ? ? ? ?………………..?
? ?With investment? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ………………..? ? ? ? ? ? ? ? ? ?………………..?