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ROI and Investment Decisions Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Division:

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ROI and Investment Decisions Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Division: Year 1 Year 2 Sales $35,400,000 $38,300,000 Operating income 1,350,000 1,510,000 Average operating assets 1,550,000 1,550,000 Canned Foods Division: Year 1 Year 2 Sales Operating income $11,900,000 $12,800,000 Average operating assets 650,000 5,950,000 570,000 5,950,000 At the end of Year 2, the manager of the Canned Foods Division is concerned about the division's performance. As a result, he is considering the opportunity to invest in two independent projects. The first is juice boxes for elementary school children. The second is fruit and veggie pouches for kids on the go. Without the investments, the division expects that Year 2 data will remain unchanged. The expected operating incomes and the outlay required for each investment are as follows:) Juice Box Fruit Pouch Operating income Outlay $20,000 250,000 $15,200 200,000

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