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Firefox File Edit View History Bookmarks Tools Window Help ??17% D. Wed 3:50 PM Atika Ishtiaq a E @ Accounting question l Chegg.c × https://newconnect.mheducation.com/flow/connect.html ? a search Ch 09 Ex 9-9 6 Help Save & ExitSubmit Saved Check my work Exercise 9-9 Investment centeranalysis LO A1 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 $75,000. The second location (B) requires a $200,000 investment and is expected to yield annual net income of $42,000. points Compute the return on investment for each Fast & Great Burgers altenative. Hint Ask Return on Investment Print Numerator Denominator ROI ROI Lccation A Location B Using return on investment as your only criterion, recommend which of the locations to open. Prev 1 of 1 Next Hill

Explanation / Answer

Answer:-Return on investment =(Net Income/Total Investment)*100

Location A= ($75000/$500000)*100 =15%

Location B= ($42000/$200000)*100 =21%

Location B return on investment is higher than location A, hence Fast & Great Burgers should open location A instead of B.

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