! Required information [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Investment Center Electronics Sporting goods Sales Income Average Assets $ $ 42,250,000 3,211,000 16,900,000 19,350,000 2,322,000 12,900,000 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 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% return on investment. Should the new investment opportunity be accepted? The target return is 12%. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? Electronics Return on Investment Numerator: / Denominator: Sporting Goods Which center is most efficient at using assets to generate income? < Required 1 = Return on Investment = = Required 2 > S ! Required information [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Investment Center Sales Income Average Assets $ Electronics 42,250,000 3,211,000 16,900,000 Sporting goods 19,350,000 2,322,000 12,900,000 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 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% return on investment. Should the new investment opportunity be accepted? The target return is 12%. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated the most residual income? Investment Center Electronics Income Residual income Which center generated the most residual income? Sporting Goods < Required 1 Required 3 > Required information [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Investment Center Sales Income Average Assets $ $ $ Electronics 42,250,000 3,211,000 16,900,000 Sporting goods 19,350,000 2,322,000 12,900,000 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 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% return on investment. Should the new investment opportunity be accepted? The target return is 12%. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 12%. Should the new investment opportunity Show less be accepted? < Required 2 Required 3 >