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Required information (The following information applies to the questions displayed below.) Megamart, a retailer of consumer goods, provides the following information on two of its

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Required information (The following information applies to the questions displayed below.) Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales $ 40,000,000 20,000,000 Income $2,880,000 2,040,000 Average Invested Assets $16,000,000 12,000,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of 12% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume a target income level of 12% of average invested assets. Compute residual income for each department. Whic department generated the most residual income for the company? Sporting Goods Investment Center Electronics Net income Target net income Residual income Which department is most efficient at using assets to generate returns for the company? 1. Compute return on investment for each department. Using return on invest to generate returns for the company? 2. Assume a target income level of 12% of average invested assets. Compute generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment op Should the new investment opportunity be accepted? Complete this question by eyitering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the Electronics department is presented with a new investment opportuni investment. Should the new investment opportunity be accepted? Should the new investment opportunity be accepted?

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