Please send answer in chart set up Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Sales...




Please send answer in chart set up


Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center).








































Investment CenterSalesIncomeAverage
Invested Assets
Electronics$39,840,000$2,988,000$16,600,000
Sporting goods25,200,0002,142,00012,600,000








1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company?

2. Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company?

3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted?





Compute return on investment for each department. Using return on investment, which department is most efficient at using<br>assets to generate returns for the company?<br>Return on Investment<br>I Choose Denominator:<br>= Return on Investment<br>Choose Numerator:<br>Return on Investment<br>Electronics<br>Sporting Goods<br>Which department is most efficient at using assets to generate returns for the<br>company?<br>Complete this question by entering your answers in the tabs below.<br>Required 1<br>Required 2<br>Required 3<br>Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which<br>department generated the most residual income for the company?<br>Investment Center<br>Electronics Sporting Goods<br>Net income<br>Target net income<br>Residual income<br>Which department is most efficient at using<br>assets to generate returns for the company?<br>Complete this question by entering your answers in the tabs below.<br>Required 1<br>Required 2<br>Required 3<br>Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on<br>investment. Should the new investment opportunity, be accepted?<br>Should the new investment opportunity be accepted?<br>II<br>

Extracted text: Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? Return on Investment I Choose Denominator: = Return on Investment Choose Numerator: Return on Investment Electronics Sporting Goods Which department is most efficient at using assets to generate returns for the company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? Investment Center Electronics Sporting Goods Net income Target net income Residual income Which department is most efficient at using assets to generate returns for the company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity, be accepted? Should the new investment opportunity be accepted? II
Jun 11, 2022
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