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Compute the return on investment for each alternative

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Reference no: EM132838229

Problem - 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 $85,000. The second location (B) requires a $200,000 investment and is expected to yield annual net income of $42,000.

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 a 21% return on total assets).

Reference no: EM132838229

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