The Wade Division of Geisler Corporation has a current ROI of 20 percent. The company target ROI is 13 percent. The Wade Division has an opportunity to invest $5,000,000 at 18 percent but is reluctant to do so because its ROI will fall to 19.21 percent. The present investment base for the division is $7,650,000.
Calculate the NEW residual income if the investment opportunity is adopted.