PROBLEM 2 (ROI and RI) Cindy Cannon, the manager of Crown Division, Lockyard Corporation, has enjoyed success. Her division's return on investment (ROI) has consistently been 18 percent on a total investment in operating assets of $5,000,000. 20 Lockyard evaluates its division managers based on ROI. The company's desired ROI is 12%3,500,000 evaluating an opportunity that will require a $1,000,000 investment in additional operating assets and is expected to result in a 14 percent return. 1,500,000 16% REQUIRED: \{a) Would it be advantageous for Lockyard Corporation if Ms. Cannon makes the investment under consideration? b) What effect will making the proposed investment have on Crown Division's ROI? Show computations. c) What effect will making the proposed investment have on Crown Division's residual income (RI)? d) Would ROI or RI be the better performance measure for Ms. Cannon? Explain