3) Zmart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Note: there is one of these on the upcoming exam.. (1) Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? (2) Assume a target income level of
12%
of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? Residual income is clearly explained in your text, so look it up and give this a try. (3) Assume the Electronics department is presented. with a new investment opportunity that will yield a
15%
return on assets. Should the new investment opportunity be accepted? Explain.