You have been engaged as a management consultant by Scylace plc, a grocery retail chain. You have been asked to evaluate two alternative proposals for a new superstore. You have the option to build the superstore at one of two locations. The cost of building the new superstore and the annual sales revenue and costs are as follows: Cost af New Superstore Residual Value Annual Sales Revenue Annual Cost of Sales Annual Staff Costs Other Annual Costs excluding depreciation Option A Location A E million 30.0 3.0 36.0 (27.0) (2.2) Option B Location B E million 45.0 7.0 52.0 (39.0) (4.8) (0.8) Depreciation is to be charged on a straight line basis over a periad of SO years, taking account of the residual value. You have been engaged as a management consultant by Scylace plc, a grocery retail chain. You have been asked to evaluate two alternative proposals for a new superstore. You have the option to build the superstore at one of two locations. The cost of building the new superstore and the annual sales revenue and costs are as follows: Cost af New Superstore Residual Value Annual Sales Revenue Annual Cost of Sales Annual Staff Costs Other Annual Costs excluding depreciation Option A Location A E million 30.0 3.0 36.0 (27.0) (2.2) Option B Location B E million 45.0 7.0 52.0 (39.0) (4.8) (0.8) Depreciation is to be charged on a straight line basis over a periad of SO years, taking account of the residual value.