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 $80,000. 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 Numerator 1 Denominator Net income 11 Average invested assets 80,000 $ 500,000 40,000 $ 200,000 ROI ROI 16% Location A Location B $ $