For the period just ended, Trek Corporation's Trailer Division reported profit of $171 million and invested capital of $610 million. Assuming an imputed interest rate of 20%, which of the following choices correctly denotes Trailer's return on investment (ROI) and residual income? ROI Residual Income A. 28% $49 million B. 28% $ (49 million) C. 20% $49 million D. $49 million 28% E. None of the answers is correct.
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