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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

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%.))

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