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You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is trying to decide which
You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is trying to decide which outlet of two alternatives to open. The first location (A) requires a $500,000 Investment and is expected to yield annual net income of $85,000. The second location (B) requires a $200,000 Investment and is expected to yield annual net income of $40,000 Compute the return on investment for each Fast & Great Burgers alternative. Return on Investment ROI ROI Numerator Denominator Location A Location B Use the following information for the Exercises below [The following Information applies to the questions displayed below.j A food manufacturer reports the following for two of its divisions for a recent year Beverage Division Cheese Division (Smillions) Invested assets, beginning Invested assets, ending Sales Operating income $ 3,000 $ 5,700 5,600 3,938 647 2,900 2,694 362 Exercise 22-13 Residual income LO A1 Assume that each of the company's dMsons has a required rate of return of 8.00%. Compute residual income for each division. (Enter your answers In milllons.) $ millions) Cheese Beverage Targeted return Target income Residual Income Beverage Cheese Residual income
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