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E10-8 (Algo) Evaluating Managerial Performance Using Return on Investment, Residual Income [LO 10-4, 10-5] Orange Corporation has two divisions. Fruit and Flower. The following information

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E10-8 (Algo) Evaluating Managerial Performance Using Return on Investment, Residual Income [LO 10-4, 10-5] 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 6 percent. Required: 1-a. Compute each division's fetum on investment (ROI) and residual income for last year. 1-b. Determine which manoger seems to be performing better. 2. Suppose Orange is investing in new technology that will increase each division's operating income by $122,000. The totial investment required is $1,600,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for each division after the investment is made 3. Determine whether both managers wil support the investment Complete this question by entering your answers in the tabs below. Compute each division's return on investment (ROI) and resildual income for last vear. Note: Enter your ROI answers as a percentage rounded to two decimal places, (1.6,0.1234 should be entered as 12.34 . 3 ) E10-8 (Algo) Evaluating Managerial Performance Using Return on Investment, Residual Income [LO 10-4, 10-5] 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 6 percent Required: 1-8. Compute each division's return on investment (ROI) and residual income for last year. 1-b. Determine which manager seems to be performing better 2. Suppose Orange is investing in new technology that will increase each division's operating income by $122,000. The total investment required is $1,600,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for each division after the investment is made. 3. Determine whether both managers will support the investment. Complete this question by entering your answers in the tabs below. Determine which manager seems to be performing better. E10-8 (Algo) Evaluating Managerial Performance Using Return on Investment, Residual Income [LO 10-4, 10-5] 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 6 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. 1.b. Determine which manager seems to be performing better. 2. Suppose Orange is investing in new technology that will increase each division's operating income by $122.000 The total investment required is $1,600,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for each division after the investment is made. 3. Determine whether both managers will support the investment Complete this question by entering your answers in the tabs below. Suppose Orange is investing in new technology that will increase each division's operating income by $122,000. The total investment required is $1,600,000, which will be split evenly between the two divistons. Calculate the ROI and residual income for each division after the investment is made. E10-8 (Algo) Evaluating Managerial Performance Using Return on Investment, Residual Income [LO 10-4, 10-5] 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 6 percent Required: 1-a. Compute each division's return on investment (RO) and residual income for last year 1-b. Determine which manager seems to be performing bettet 2. Suppose Oronge is investing in new technology that will increase eoch division's operaung income by $122,000 The total investment required is $1,600,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for each division ofter the investment is made. 3. Determine whether both managers will support the investment. Complete this question by entering your answers in the tabs below. Determine whether both managers will support the investment

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