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Use the following information to answer the next TWO (2) questions. The Justice Division is one of the three autonomous divisions of Big Brands,

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Use the following information to answer the next TWO (2) questions. The Justice Division is one of the three autonomous divisions of Big Brands, Inc. The Justice division has $12,750,000 of capital invested in operating assets, and is currently earning a $3,250,000 operating income annually. A new investment has been proposed to the Justice Division. It will require $5,200,000 of capital in operating assets and will generate $936,000 operating income annually. Big Brands, Inc. requires all its divisions to earn a minimum return of 15% for all investments. 1. What is the Return on Investment (ROI) of Justice Division if it accepts the new investment (i.e., Division's ROI AFTER the new investment)? (Round to 4 decimal places, XX.XX%) 23.32% 15% 18% 25.49% 32.83% 2. What is the Residual Income (RI) of Justice Division if it accepts the new investment (i.e., Divistion's RI AFTER the new investment?) $1,493,500 $2,273,500 $6,878,500 O $156,000 O $1,337,500

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