(4 Marks) Question 2 Division M is a division of MR plc. The following data ion of MR ple. The following data relate to Division M. Net assets $20m Annual profit $5m Cost of capital 15% per annum MR plc is considering two proposals. Proposal 1 Invest a further $2m in non-current assets to earn an annual profit of $0.40m. Proposal 2 Dispose of non-current assets at their net book value of $5.5m. This would lead to profits falling by $lm per annum. Proceeds from the disposal of these non-current assets would not be credited to Division M (but to the Holding Company of MR plc instead). Required (a) Calculate the current ROI and RI for Division M. (6 Marks) (b) Consider each of the two proposals and show how the ROI and RI would change if these proposals were adopted. (4 Marks)