Question: Exercise 2 2 - 1 0 ( Algo ) Computing return on investment and residual income; investing decision LO A 1 Compute retum on investment

Exercise

22 - 10 (

Algo

)

Computing return on investment and residual income; investing decision LO A

1

Compute retum on investment for each center. Using return on investment, 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 retum 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? PLEASE FILL IN THE TABLE THE QUESTION WAS JUST ANSWERED AND DIDNT UDNERTSTAND RESPONSE, TABLE WASNT FILLED OUT FOR ANY OF THESE

Exercise 22-10(Algo) Computing return on investment and residual income; investing decision

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