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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.

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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 $4,100,000 of capital in operating assets and will generate $848,000 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%) O 25.49% O 32.14% O 15% O 24.32% O 20.68% 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 $6,625,500 O $2,185,500 O $1,337,500 $1,570,500 O $233,000 O

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