Historical cost and current cost ROI measures. Nobillo Corporation owns and manages convenience stores. The following information on three stores is collected for the year 2007:

City Plaza South Station Central Park Operating income $108,000 $144,000 Historical cost ofinvestment $360,000 $600,000 Current cost ofinvestment $720,000 $840,000 Age ofstore 10 years 5 years

$ 72,000

$288,000

$540,000 8 years Required 1. Compute the ROI for each store where investment is measured at

(a) historical cost and

(b) current cost.

2. How would you judge the performance of each store?