Required Information

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Megamart provides the following Information on Its two Investment centers.

Compute return on investment for each center. Using return on Investment, which center Is most efficlent 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 yleld a $14\%$ return on Investment.

Should the new Investment opportunity be accepted? The target return is $11\%.$

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Required $3$

Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to

generate income?