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 $70,000. The second location (B) requires a $200,000 investment and is expected to yield annual net income of $46,000.

Compute the return on investment for each Fast & Great Burgers alternative.

Return on Investment Denominator Numerator ROL ROI Location A Location B Using return on investment as your only criterion, recommend which of the locations to open O Location A O Location B