Exercise 22-10 (Algo) Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment fot 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 Electronics center is presented with a new investment opportunity that will yield a 14% retum on irivestment. Should the 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 incme? 1. Compute return on investment for each center. Using return on investment, which center is most efficient at us income? 2. Assume a target income of 12% of average assets. Compute residual income for each center. Which center ge residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yleld a 14% return on in 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 residal income for each center. Which center generated the most residual income? 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 14% return on investm Should the new investment opportunity be accepted? The target return is 12%. Should the newinvestment opportunity be accepted