The Monarch Division of Allgood Corporation has a current ROI of $11$ percent. The company's target ROI is $7$ percent. The Monarch Division has an opportunity to invest $$4,900,000$ at $9$ percent but is reluctant to do so because its ROI will fall to $10\mathrm{.}30$ percent. The present investment base for the division is $$9,100,000.$

Required

a$.$ Calculate the current residual income and the residual income with the new investment opportunity being included.

b$.$ Based on your answers to requirement a$,$ should Monarch Division make the investment?

a$.$ Current residual income

a$.$ New residual income

b$.$ Should Monarch Division make the investment?