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Assume that fast-food restaurants generally provide an ROI of 10%, but that such a restaurant...

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Accounting

Assume that fast-food restaurants generally provide an ROI of 10%, but that such a restaurant near a college campus has an ROI of 16% because its relatively large volume of business generates an above-average turnover (sales/assets). The replacement value of the restaurants plant and equipment is $500,000. If investors were to invest that amount in a restaurant elsewhere in town, they could expect a 10% ROI.

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