Minor & Neece, Ltd., operates retail clothing stores in Nashville, Knoxville, and Memphis, Tennessee. Each store is evaluated as an investment center. Selected results from the latest year are as follows.

		Nashville		Knoxville		Memphis
Sales		$5,057,000		$8,059,000		$2,056,000
Variable expenses		2,033,000		4,813,000		1,095,000
Direct fixed expenses		2,033,000		2,404,000		887,000
Assets		4,000,000		5,000,000		1,600,000
Required rate of return		14%		14%		14%
Weighted average cost of capital		8%		8%		8%
Tax rate		30%		30%		30%

NASHVILLE KNOXVILLE MEMPHIS

residual value : $ $ $