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The area manager of the Coronado Restaurants is considering two possible expansion alternatives. The required investments, expected controllable margins, and the ROIs of each are
The area manager of the Coronado Restaurants is considering two possible expansion alternatives. The required investments, expected controllable margins, and the ROIs of each are as follows: Project Investment Controllable Margin ROI Phoenix $160000 $33000 20.63% Chicago $530000 $56000 10.57% The Coronado segment has currently $2000000 in average operating assets and a controllable margin of $250000. Which one of following projects will increase the Coronado division's ROI? O Both the Phoenix and Chicago options O Only the Phoenix option O Only the Chicago option O Neither the Phoenix nor the Chicago options
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