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Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? Assume a target

Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income?
Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income?
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 11%.!
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Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
Megamart provides the following information on its two investment centers.
Exercise 9-10(Algo) Computing return on investment and residual income; investing decision LO A1
Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to
generate income?
Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most
residual income?
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 11%.
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