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Compute the return on investment for each out-and-in burgers

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Question: You must prepare a return on investment analysis for the regional manager of Out-and-In 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 $80,000. The second location (B) requires a $200,000 investment and is expected to yield annual net income of $38,000. Compute the return on investment for each Out-and-In Burgers alternative and then make your recommendation in a one-half page memorandum to the regional manager. (The chain currently generates an 18% return on total assets.)

Reference no: EM131538787

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