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Homer's Housewares sells products in two segments: Pots and Pans. Information regarding each segment's current operations is shown below: Pots Pans Average invested capital $500,000

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Homer's Housewares sells products in two segments: Pots and Pans. Information regarding each segment's current operations is shown below: Pots Pans Average invested capital $500,000 $400,000 $120,000 Profit $75,000 Discount rate 12% 10% Suppose the performance of each segment's manager is evaluated based on return on investment. Each manager is considering in a new project with a return on investment of 16%. Which manager(s) should choose to invest in the project? Pots only Pans only Neither segment Not enough information to determine Both segments Suppose the performance of each segment's manager is evaluated based on residual income. Each manager is considering in a new project with a return on investment of 14%. Which manager(s) should choose to invest in the project? Both segments Pots only Not enough information to determine Neither segment Pans only

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