Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division:

	Fruit Division			Flower Division
Sales revenue	$	840,000		$	1,260,000
Cost of goods sold and operating expenses		630,000			945,000
Net operating income	$	210,000		$	315,000
Average invested assets	$	2,100,000		$	1,750,000

Orange has established a hurdle rate of 6 percent.

2. Suppose Orange is investing in new technology that will increase each divisions operating income by $126,000. The total investment required is $1,800,000, 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%.))

ROI= 11.20% for fruit division and 16.64% for flower division.

What would be the Residule Income? (loss)