Question: Please help me do all the requirements. I'll give a BIG thumbs up ! Orange Corporation has two divisions: Fruit and Flower. The following information
Please help me do all the requirements. I'll give a BIG thumbs up
Orange Corporation has two divisions: Fruit and Flower. The following information for the past year is available for each division:
Orange has established a hurdle rate of percent.
Required:
a Compute each division's return on investment ROI and residual income for last year.
b Determine which manager seems to be performing better.
Suppose Orange is investing in new technology that will increase each division's operating income by $ The total
investment required is $ which will be split evenly between the two divisions. Calculate the ROI and residual income for
each division after the investment is made.
Determine whether both managers will support the investment.
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