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Aequired information Use the following information for the Exercises below. (Algo) [The following information applies to the questions dispiayed below] Megamart provides the following information

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Aequired information Use the following information for the Exercises below. (Algo) [The following information applies to the questions dispiayed below] Megamart provides the following information on its two investment centers. Exercise 22-10 (Algo) Computing return on investment and residual income; investing decision LO A1 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 12% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electrenics center is presented with a new investment opportunity that will yield a 15% return on invistment. Should the new investment opportunity be accepted? The target return is 12%. Complete this question by entering your answers in the tabs below. Compute retum on investment for each center, Using retum on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated the n ncome? residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 15% return on investment. new investment opportunity be accepted? The target return is 12%. Complete this question by entering your answers in the tabs below. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 15% return on investment. Shor new investment opportunity be accepted? The target return is 12%. Complete this question by entering your answers in the tabs below. Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated the most residual income? 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to genera income? 2. Assume a target income of 12% 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 15% return on investment. Should th new investment opportunity be accepted? The target return is 12%. Complete this question by entering your answers in the tabs below. Assume the Electronics center is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? The target return is 12%

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