Exercise 09-9 Investment center analysis LO A1 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 $70,000. 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.)

• Return on Investment
• Choice of Location

Compute the return on investment for each Fast & Great Burgers alternative.

Return on Investment
	Numerator	/	Denominator	=	ROI
		/		=	ROI
Location A
Location B

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?