Check my work 4 Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center) Part 1 of 2 Investment Center Electronics Sporting goods Sales Income $42,240,000 $3,168,000 23, 120,000 2,312,000 Average Invested Assets $17,600,000 13,600,000 5 points 04:45-154 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 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment Should the new investment opportunity be accepted? Slopped ebook Hist Complete this question by entering your answers in the tabs below. Print References Required 1 Required 2 Required 3 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? ME Graw ll 4 Required information urt 1 of 2 Complete this question by entering your answers in the tabs below. nts Required 1 Required 2 Required 3 Compute return on investment for each department. Using retum bn investment, which department is most efficient at using assets to generate returns for the company? 3 04:45 39 Skipped Return on Investment Choose Denominator: Choose Numerator: Return on investment Book Return on investment Hint Print Electronics Sporting Goods 1 Which department is most efficient at using assets to generate returns for the company References RO Required 2 > Chech 4 Required information Part 1 of 2 Complete this question by entering your answers in the tabs below. 5 points Required 1 Required 2 Required 3 044527 Assume a target Income level of 11% of average invested assets, Compute residual income for each department, which department generated the most residual income for the company? Skipped Book Investment Center Electronics Sporting Goods Not income Target net income Residual income Which department is most efficient at using assets to generate retums for the company Hint Print References Mc Graw Check my 4 Required information Part 1 of 2 Complete this question by entering your answers in the tabs below. 5 points Required 1 Required 2 Require 3 8 04:45.0 Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on Investment. Should the new investment opportunity be accepted? Skipped Should the new investment opportunity be accepted?
