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ollowing information to answer the next TWO (2) questions. e Division is one of the three autonomous divisions of Big Brands, Inc. The Justice
ollowing information to answer the next TWO (2) questions. e Division is one of the three autonomous divisions of Big Brands, Inc. The Justice division has $12,750,000 of capital invested in assets, and is currently earning a $3,250,000 operating income annually. A new investment has been proposed to the Justice Division. It e $5,100,000 of capital in operating assets and will generate $928,000 operating income annually. Big Brands, Inc. requires all its o earn a minimum return of 15% for all investments. t is the Return on Investment (ROI) of Justice Division if it accepts the new investment (i.e., Division's ROI AFTER the new stment)? (Round to 4 decimal places, XX.XX%) 25.49% O 32.77% 23,41% 15% 18.2% s the Residual Income (RI) of Justice Division if it accepts the new investment (i.e., Divistion's RI AFTER the new investment?) $1,337,500 $2,265,500 $163,000 $1,500,500 $6,855,500
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