CH 09 EX 9-9

You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is trying to decide which outlet of two alternatives to open. The first location (A) requires a $500,000 investment and is expected to yield annual net income of $80,000. The second location (B) requires a $200,000 investment and is expected to yield annual net income of $44,000. Compute the return on investment for each Fast & Great Burgers alternative. Using return on investment as your only criterion, which location (A or B) should the company open? (The chain currently generates an 22% return on total assets.) Complete this question by entering your answers in the tabs below. Return on Investment Choice of Location Compute the return on investment for each Fast & Great Burgers alternative. Return on Investment Numerator 1 Denominator ROI = ROI Location A Location B Return on Investment Choice of Location > You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is trying to decide which outlet of two alternatives to open. The first location (A) requires a $500,000 investment and is expected to yield annual net income of $80,000. The second location (B) requires a $200,000 investment and is expected to yield annual net income of $44,000. Compute the return on investment for each Fast & Great Burgers alternative. Using return on investment as your only criterion, which location (A or B) should the company open? (The chain currently generates an 22% return on total assets.) Complete this question by entering your answers in the tabs below. Return on Investment Choice of Location Using return on investment as your only criterion, which location (A or B) should the company open? Using return on investment as your only criterion, which location (A or B) should the company open?