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Required Information [The following Information applies to the questions displayed below] Megamart provides the following Information on Its two Investment centers. Investment Center Electronics
Required Information [The following Information applies to the questions displayed below] Megamart provides the following Information on Its two Investment centers. Investment Center Electronics Sales Sporting goods $ 43,000,000 19,800,000 Income $ 2,752,000 1,980,000 Average Assets $ 17,200,000 13,200,000 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 10% 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 10%. Complete this question by entering your answers in the tabs below. es Required 1 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? Electronics Sporting Goods Return on Investment Numerator: Denominator: = Return on Investment I = Which center is most efficient at using assets to generate income? Reed 1 Required 2 >
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