Exercise 22-9 (Algo) Return on investment analysis LO A1 A growing chain is trying to...
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Exercise 22-9 (Algo) Return on investment analysis LO A1 A growing chain is trying to decide which store location to open. The first location (A) requires a $500,000 investment in average assets and is expected to yield annual income of $75,000. The second locotion (B) requires a $200,000 investment in average assets and is expected to yieid annual income of $38,000. (1) Compute the expected return on investment for each location. (2) Using return on investment, which location (A or B) should the company open? Complete this question by entering your answers in the tabs below. Compute the expected retum on investment for each location. Exercise 22-9 (Algo) Return on investment analysis LO A1 A growing chain is trying to decide which store location to open. The first location (A) requires a $500,000 investment in average assets and is expected to yleld annual income of $75,000. The second location (B) requires a $200,000 investment in average assets and is expected to yield annual income of $38,000. (1) Compute the expected return on investment for each location. (2) Using return on investment, which location (A or B) should the company open? Complete this question by entering your answers in the tabs below. Using return on investment, which location ( A or B ) should the company open? Using return on investment, which location ( A or B ) should the company open
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