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Use the following Informatlon for the Exerclses below. The following Information applies to the questions displayed below Megamart, a retaller of consumer goods, provides the
Use the following Informatlon for the Exerclses below. The following Information applies to the questions displayed below Megamart, a retaller of consumer goods, provides the following Information on two of its departments (each considered an Investment center). Average Invested Assets $16,580,889 12,58e,889 Sales Income Electronics Sporting goods $56,180,890 52,885,889 25,88e,69 2,88e,888 Exercise 22-10 Computing return on Investment and resldual Income; Investing decislon LO A1 . Compute return on Investment for each department Using return on Investment, which department is most efficlent at using assets o generate returns for the company? 2 Assume a target income level of 10% of average invested assets. Compute residual Income for each department. which department generated the most resldual Income for the company? . Assume the Electronics department is presented with a new investment opportunity that will yield a 14% return on investment. Should the new Investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each department. Using returm on investment, which department is most efficient at using assets to generate returns for the company? Return on l Return on Investment Sporting Goods Which department is most efficient at using assets to generate returns for the
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