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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 $80,000. The second location (B) requires a $200,000 investment in average assets and is expected to yield annual income of $40,000. (1) Compute the expected return on investment for each location.
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