Problem 6: Tam Burger ((Option to Problem 5) In the past five years, TamBurger has expanded to more than 200 stores, 80 percent of which are franchised. Two of the company-operated units, Northside, and Southside, are among the fastest-growing stores, Bohh are considering expanding their menus to include pizza. and installation of necessary equipment costs $180,000 per store. The current investment in the Northside store totals $890,000. Store revenues are $1,100,500 and expenses are $924,420. Expansion of Northside's menushould increase profits by $30,600. The current investment in the Southside store totals $1,740,000. The store's revenues are $1,760,800 and expenses are $1,496,680. Adding pizza to Southside's menu should increase its profits by $30,600. Tam Burger evaluates its manager based on return on investment. Managers of individual stores have a decision right over the pizza expansion. Required: a) Calculate the return on investment for both stores before pizza is added, for the piza project only, and for the stores after expansion. b) Assuming a 14 percent cost of capital, calculate residual income for both stores before and after the potential expansion c) Will the Tam Burger store choose to expand? How would the answer change if the store were franchised units