Use the following information to answer the next TWO (2) questions. The Justice Division is...
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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. will require 55,200,000 of capital in opertion a for all investments 1. What is the Return on Investment (ROD) of Justice Division if it accepts the new investment (i.e., Division's ROI AETER the new investment)? (Round to 4 decimal places, XX.XX% ) \begin{tabular}{l} 18% \\ \hline 23.32% \\ \hline 32.83% \\ \hline 25.499 \\ 15% \end{tabular} 2. What is the Residual Income (RI) of Justice Division if it accepts the new investment (i.e., Divistion's RI AETER the new investment $2,273,500 $6,878,500 $1,337,500 S156,000 $1,493,500
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