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Return on Investment Choice of Location Compute the return on investment for each Fast & Great Burgers alternative. Return on Investment Numerator ROI Denominator ROI Location A Location B Return on Investment Choice of Location Return on Investment Choice of Location Using return on investment as your only criterion, which location (A or B) should the company open? Using return on investment as your only criterion, which location (A or B) should the company open? < Return on Investment Choice of Location

Return on Investment Choice of Location Compute the return on investment for each Fast & Great Burgers alternative. Return on Investment Numerator ROI Denominator ROI Location A Location B Return on Investment Choice of Location Return on Investment Choice of Location Using return on investment as your only criterion, which location (A or B) should the company open? Using return on investment as your only criterion, which location (A or B) should the company open? < Return on Investment Choice of Location

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 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 $44,000.
 
Compute the return on investment for each Fast & Great Burgers alternative. Using return on investment as your only criterion, which location (A or B) should the company open? (The chain currently generates an 22% return on total assets.)

Return on Investment Choice of Location Compute the return on investment for each Fast & Great Burgers alternative. Return on Investment Numerator ROI Denominator ROI Location A Location B Return on Investment Choice of Location
Transcribed Image Text:Return on Investment Choice of Location Compute the return on investment for each Fast & Great Burgers alternative. Return on Investment Numerator ROI Denominator ROI Location A Location B Return on Investment Choice of Location
Return on Investment Choice of Location Using return on investment as your only criterion, which location (A or B) should the company open? Using return on investment as your only criterion, which location (A or B) should the company open? < Return on Investment Choice of Location
Transcribed Image Text:Return on Investment Choice of Location Using return on investment as your only criterion, which location (A or B) should the company open? Using return on investment as your only criterion, which location (A or B) should the company open? < Return on Investment Choice of Location
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