Arab Security Storage Company; lease document storage facilities to non- government agencies on a multiyear contract basis. The company is considering three potential locations (A, B, and C) for a new facility that will have (contractual guaranteed) annual costs of $55,000, $50,800 and 58,800, respectively. The annual revenue from the leasing the facility to a government agency is know in advance to be 80,000 for location A, $72,000 for location B, and $84,000 for C location.

Which location will maximize the net return per year?

Answer rating: 100% (QA)

Location A Revenue 80000 Cost 55000 Net Return Revenue Cost 8... View the full answer