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Megamart provides the following Information on its two investment centers, Investment Center Electronics Sporting goods Sales $ 45, eee, 000 25, 200, eee Income $

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Megamart provides the following Information on its two investment centers, Investment Center Electronics Sporting goods Sales $ 45, eee, 000 25, 200, eee Income $ 3,420,000 2,520,000 Average Assets $ 18,000,000 14,000,000 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 15% return on investment Should the new investment opportunity be accepted? The target return is 11% Complete this question by entering your answers in the tabs below. Required: 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? Return on investment Numerator: Denominator Return on Investment Electronics Sporting Goods Which conter is most efficient at using assets to generate income? 1 = 1 Required: Required 2 > WWW Required 1 Required 2 Required 3 Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? Investment Center Electronics Sporting Goods Income Residual income Which center generated the most residual income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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%. Should the new investment opportunity be accepted?

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