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Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Megamart provides the following information on its
Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. sercise 22-10 (Algo) Computing return on investment and residual income; investing decision LO A1 Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate :ome? Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most sidual income? Assume the Electronics center is presented with a new investment opportunity that will yield a 15% return on investment. Should the w investment opportunity be accepted? The target return is 11%. Compute return on investment for each center. Using return on investment, which center is most efficient generate income? Which center is most efficient at using assets to generate income? Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 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%. Should the new investment opportunity be accepted
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