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Orange Corp. has two divisions: Fruit and Flower. The folowing information for the past year is available for each division: Fruit Division 1,500,000 Flower Division 2,250,000 1,687,500 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets $ 1,125,000 375,000 3.125,000 $ 562,500 2,343,750 $ $ Orange has established a hurdle rate of 8 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. (Enter your ROI answers as a perceMage rounded to two decimal places, (Le., 0.1234 should be entered as 12.34 %.) Fruit Division Flower Division ROI % % Residual Income (Loss) 1-b. Determine which manager seems to be performing better. Fruit Division Flower Division 2. Suppose Orange is investing in new technology that will increase each division's operating income by $148,000. The total Investment required is $2,400,000, which will be split evenly between the two divisions. Calculate the ROI and return on investment for each division after the investment is made. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34 % ) Fruit Division Flower Division ROI Residual Income (Loss) 3. Which manager will accept the investment Fruit Division Manager Flower Division Manager

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