You must prepare a return on investment analysis

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You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is trying to decide which outlet of two alternatives to open. 

The first location: 

(1) Requires a $1,000,000 investment and is expected to yield annual net income of $160,000. 

The second location: 

(2) Requires a $ 600,000 investment and is expected to yield annual net income of $108,000. Compute the return on investment for each Fast & Great Burgers alternative and then make your recommendation in a one-half page memorandum to the regional manager. (The chain currently generates an 18% return on total assets.)

Reference no: EM13907485

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