Sinclair Wholesalers plc is currently considering opening a new sales outlet in Coventry. Two possible sites have
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Sinclair Wholesalers plc is currently considering opening a new sales outlet in Coventry. Two possible sites have been identified for the new outlet. Site A has an area of 30,000 square metres. It will require an average investment of £6 million and will produce an average operating profit of £600,000 a year. Site B has an area of 20,000 square metres. It will require an average investment of £4 million and will produce an average operating profit of £500,000 a year.
What is the ARR of each investment opportunity? Which site would you select and why?
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Accounting And Finance For Non Specialists
ISBN: 9781292334691
12th Edition
Authors: Peter Atrill, Eddie McLaney
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