Question 4 Part B: When conducting a ROR analysis, why can you not compare two projects simply based on ROR?

Question 4 Part C: When conducting a ROR analysis, which analysis method is required to compare projects?

Question 4 Part D: Select the correct Incremental ROR equation for this scenario?

Question 4 Part E: Provide the incremental Rate of Return for the comparison of Location A and Location B. Provide your answer in the form: 12.34

Question 4 Part F: Provide a statement to choose the preferable location

Answer all part please

Megumi is considering a new investment in a fishing village restaurant. She has scouted three locations that could suit her needs. Based on the location, her initial cost, annual operations and maintenance, and estimated annual revenue would also change. Please help Megumi make a decision on the best location to choose using a ROR analysis. Megumi uses a personal MARR of 10% and a 10 year planning horizon. Location A Location B Location C Annual Revenues $43,000 $35,000 $45,000 Individual ROR 11.86% 11.73% 7.15% Initial Cost $220,000 $170,000 $300,000 Annual O&M Costs $2,000 $5,000 $2,000 Question 4 Part A: Which location can be eliminated immediately? Location A O Location C O Location B No locations should be eliminated immediately Megumi is considering a new investment in a fishing village restaurant. She has scouted three locations that could suit her needs. Based on the location, her initial cost, annual operations and maintenance, and estimated annual revenue would also change. Please help Megumi make a decision on the best location to choose using a ROR analysis. Megumi uses a personal MARR of 10% and a 10 year planning horizon. Location A Location B Location C Annual Revenues $43,000 $35,000 $45,000 Individual ROR 11.86% 11.73% 7.15% Initial Cost $220,000 $170,000 $300,000 Annual O&M Costs $2,000 $5,000 $2,000 Question 4 Part A: Which location can be eliminated immediately? Location A O Location C O Location B No locations should be eliminated immediately