The Monarch Division of Allgood Corporation has a current ROI of $10$ percent. The company target ROI is $6$ percent. The Monarch Division has an opportunity to invest $$4,800,000$ at $8$ percent but is reluctant to do so because its ROI will fall to $9\mathrm{.}25$ percent. The present investment base for the division is $$8,000,000.$

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?

$\backslash$table$[[,],[$a$.,$Current residual income,$$,720,000$