A growing chain is trying to decide which store location to open. The first location $($A$)$ requires a $$500,000$ investment in average assets and is expected to yield annual income of $$80,000.$ The second location $($B$)$ requires a $$200,000$ investment in average assets and is expected to yield annual income of $$40,000.$

$(1)$ Compute the expected return on investment for each location.

$(2)$ Using return on investment, which location $($A or B$)$ should the company open?Exercise $9-9($Algo$)$ Return on investment analysis LO A$1$

A growing chain is trying to decide which store location to open. The first location $($A$)$ requires a $$500,000$ investment in average

assets and is expected to yield annual income of $$80,000.$ The second location $($B$)$ requires a $$200,000$ investment in average assets

and is expected to yield annual income of $$40,000.$

$(1)$ Compute the expected return on investment for each location.

$(2)$ Using return on investment, which location $($A or B$)$ should the company open?

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Compute the expected return on investment for each location.