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A growing chain is trying to decide which store location to open the first location a requires a $500,000 investment in average assets and is
A growing chain is trying to decide which store location to open the first location a requires a $500,000 investment in average assets and is expected to yield annual income of 70,000. The second location be requires a $200,000 investment in average assets and is expected to yield annual income of 42,000.
A growing chain is trying to decide which store location to open. The first location (A) requires a $500,000 investment in average assets and is expected to yleld annual income of $70,000. The second location (B) requifes a $200,000 irvestment in average asset: and is expected to yleld annual income of $42,000. (1) Compute the expected retum on investment for each location. (2) Using retum 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 retum on investment for each location. A growing chain is trytng to decide which store location to open. The first location (A) requiles a $500,000 irvestment in average assets and is expected to yeld annual income of $70,000. The second location (B) requires a $200,000 investrnent in average assets and is expected to yleld annual income of $42,000. (1) Compute the expected retum on investment for each location. (2) Using retum on investment, which location (A or B) should the company open? Complete this question by entering your answers in the tabs below. Using retum on investment, which location (A or B) should the company open? Using retum on investment, which location (A or B) should the company open Step by Step Solution
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