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[The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Exercise 9-10 (Algo) Computing return on
[The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Exercise 9-10 (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 ncome? 2. Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated the most esidual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the hew investment opportunity be accepted? The target return is 12%. 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 9-10 (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 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 14% return on investment. Should the new investment opportunity be accepted? The target return is 12%. Complete this question by entering your answers in the tabs below. Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated the most residual income
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