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(Solved): 1. Compute return on investment for each center. Using return on investment, which center is most e ...




1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets t
Megamart provides the following information on its two investment centers.
1. Compute return on investment for each center. U
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 Should 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? Megamart provides the following information on its two investment centers. 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate 2. Assume a target income of \( 11 \% \) 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 \( 15 \% \) return on investment. Should the hew 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?


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Solution 1: Computation of return on investment for each center is as under: Return on
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