70.2K

Verified Solution

Link Copied!

A growing chain is trying to decide which store location to open. The first location (A) requires a $500,000 irvestment in averape assets and is expected to yield annual income of $85,000. The second location (B) requires a $200,000 investment in average assets and is expected to yield annual income of $38.000. (1) Cornpute the expected return on investment for each location. (2) Using relurn on investment, which location (A or B ) should the company open? Complete this question by entering your answers in the tabs below. Compute the expected return on investment for each location. A growing chain is trying to decide whtich stove location to open. The fist location (A) requires a 5500000 investment in aucrage assets and is expected te vield annual income of $85,000. The second location (B) requires a $200,000 investineot in average insets and is expected to yield annual income of 538.000. (1) Compute the expected return on investment for each location. (2) Using refuin on investment, which iocation (A or B) should the company open? Complete this guestion by enterinu vour answers in the talos below. Using return on investment, which location (A or B) should the company open? Using return on imvestment, which location (A or B ) should the conpary open

Answer & Explanation Solved by verified expert

See Answer