Required information Use the following information for the Exercises below. (Aigo) [The following information applios to the questions disployed below.] Megamart provides the following information on its two investment centers. Exercise 22-10 (Algo) Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each center. Using return on imvestment, 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 centecigenerated the most residual income? 3. Assume the Electronics center is presented wath a new investment opportunity that will yieid a 15% return on investment. Should the new investment opportunity be accepted? The taget feturn is 11%. Complete this question by entering your answers in the tabs below. Exercise 22-10 (Algo) Computing return on investment and residual income; investing decision LO A1 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. Shoule the new investment opportunity be accepted? The target return is 11%. Complete this question by entering your answers in the tabs below. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? Exercise 22-10 (Algo) Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each centec 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. Assume a target income of 11% of average assets, Compute residual income for each center. Which center generated the most residual income? Exercise 22-10 (Algo) Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each center. Using retum on investment, which center is most efficlent at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each centec. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yieid a 15% return on investment. Should the new investment opportunity be occepted? The target return is 11%. Complete this question by entering your answers in the tabs below. Assume the Electronics center is presented with a new investment opportunity that will yield a 15% retum on investment. Should the new investment opportunity be accepted? The target roturn is 11%, Should the new investnent opportunty be accepted
