Required information Use the following information for the Exercises below. (Static) [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 $ 48,000,000 20,000,000 Income 52,880,000 2,840,000 Average Assets $ 16,000,000 12,000,000 Exercise 9-10 (Static) 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 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 15% return on investment Should the new investment opportunity be accepted? The target return is 12% new investment opportunity be accepted? The target return is 12% Complete this question by entering your answers in the tabs below. 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 generat income? Return on Investment Denominator: Numerator Return on investment Elect Sporting Goods Which center is most efficient at using assets to generate Income? Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated most residual income? Electronics Sporting Goods Investment Center Income Less target income Residual income Which center generated the most residual income? new investment opportunity be accepted? The target return is 12%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the Electronics center is presented with a new investment opportunity that will yield a 15% return on inve Should the new investment opportunity be accepted? The target return is 12%. Should the new investment opportunity be accepted? Required 2