5. Agnetha division is an investment center of Abba Company. Agnetha collected the following information about its performance:

| Profits | $200,000 |
| --- | --- |
| Investment turnover | 5 |
| Residual income | $100,000 |

Abba's required rate of return is 10%.

Required:

(1) Compute the return on investment of Agnetha division. (10%)