The Monarch Division of Allgood Corporation has a current ROI of $13$ percent. The company's target ROI is $9$ percent. The Monarch Division has an opportunity to invest $$5,600,000$ at $11$ percent but is reluctant to do so because its ROI will fall to $1220$ percent. The present investment base for the division is $$8,400,000.$

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?