Use the following information to answer the next TWO (2) questions. The Dress Division is one of the three autonomous divisions of Lilian Clothing, Inc. The Dress 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 Dress Division. It will require $4,200,000 of capital in operating assets and will generate $856,000 operating income annually. Lilian Clothing Inc. requires all its divisions to earn a minimum return of 15% for all investments. 1. What is the Return on Investment (ROI) of Dress Division if it invests in the additional operating assets (i.e., Division's ROI AFTER the new investment)? (Round to 4 decimal places, XX.XX%) 24.22% 25.49% 15% 32.2% 20.38% 2. If the manager of the Dress Division accepts the new investment, what will Dress Division's Residual Income be AFTER the new investment? $6,648,500 $1,337,500 $226,000 $1,563,500 $2,193,500