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Use the following information to answer the next TWO (2) questions. The Justice Division is one of the three antonomous 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 antonomous 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 will require $4,500,000 of capital in operating assets and will generate $880,000 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 (ie., Division's ROI AFTER the new investment)? (Round to 4 decimal places, XX.XX%) 15% O32.39% O 25.49% 23.94% 19.56% 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 O $1,337,500 O $205,000 $6,717,500 O $1,542,500 O $2,217,500

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