Vess importance in firm B? 12.58 Performance evaluation & ROI (L04). MoviePlex has giant movie theatre co plexes in Houston, Atlanta, and Seattle. Each location is run independently, wil the head office located in Atlanta. The three complexes are similar in size, with 19 screens each. The Seattle location is only a year old, the Atlanta location 3 years old and the Houston location is 6 years old. The head office uses ROI to evaluate finan. cial performance. The following table presents their performance for a recent year. Houston Atlanta Seattle Variable Fixed Costs Invested Capital Annual Revenues Costs (incl. depreciation) (net book value) Depreciation $8,500,000 $2,800,000 $2,400,000 $18,000,000 $1,200,000 8,300,000 2,600,000 2,200,000 21,000,000 1,300,000 8,650,000 2,250,000 2,500,000 27,000,000 1,400,000 MoviePlex uses 10% as its required rate of return. It also depreciates its assets based on straight-line depreciation (assume that the amount for depreciation has stayed the same for the past six years.). Required: a. Prepare a table with the three locations as rows. The four columns contain ROI and RI, each calculated using net book value and gross book value. b. Discuss the effect of the measure and the choice of how to value investments on the ranking of the three locations. 19 Ahorn