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Exercise 6-17 (Algo) Goodwill effect on ROI LO 9 Assume that fast-food restaurants generally provide an ROI of 15%, but that such a restaurant
Exercise 6-17 (Algo) Goodwill effect on ROI LO 9 Assume that fast-food restaurants generally provide an ROI of 15%, but that such a restaurant near a college campus has an ROI of 19% because its relatively large volume of business generates an above-average turnover (sales/assets). The replacement value of the restaurant's plant and equipment is $202,000. If you were to invest that amount in a restaurant elsewhere in town, you could expect a 15% ROL Required: a-1. Would you be willing to pay more than $202.000 for the restaurant near the campus? O Yes O No 0-2. What is the maximum price you would be willing to pay for the business? (Do not round intermediate calculations.) Maxmum Price
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