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Two different business units of Sunland Corporation were engaged in a friendly competition to see...

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Accounting

Two different business units of Sunland Corporation were engaged in a friendly competition to see which location would make the best use of a $45,500 investment. The business units had complete autonomy to spend the money on whatever investment would best serve their locations, but they were motivated to keep ROI trends moving in a positive direction. The following financial statements reflect each business unit's profitability and financial position at the end of the prior calendar year.
Sunland Corporation uses a 7% minimum required rate of return. It is financed 70% with debt that carries an average 6% interest rate, and it averages an 8% cost of equity.
\table[[,Downtown,Uptown],[Sales,$349,000,$449,000
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