A growing chain is trying to decide which store location to open. The first location ( A
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Question:
A growing chain is trying to decide which store location to open. The first location A requires a $ investment in average assets and is expected to yield annual income of $ The second location B requires a $ investment in average assets and is expected to yield annual income of $
Compute the expected return on investment for each location.
Using return on investment, which location A or B should the company open?
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