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4 ' 11.11 points Skipped Required information [The following information applies to the questions displayed below.] Megamart provides the following information on its two
4 ' 11.11 points Skipped Required information [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Investment Center Electronics Sales Income Average Assets Sporting goods $ 41,520,000 18,088,000 $ 3,114,000 2,261,000 $ 17,300,000 13,300,000 eBook Hint Print 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 11%. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? Electronics Sporting Goods Return on Investment Numerator: / Denominator: = Return on Investment = = Which center is most efficient at using assets to generate income? < Required 1 Required 2 >
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