Please write out all work, thank you Chapter 23 Matching 1 Ice Cream Delights is
ID: 2593955 • Letter: P
Question
Please write out all work, thank you
Chapter 23 Matching 1 Ice Cream Delights is trying to decide between two alternative locations. ° The first location requires $2,000,000 investment and is expected to yield annual net income of $320,000. The second location requires an investment of $800,000 and is expected to yield net income of $140,000. Calculate the return on investment (ROI) for the regional manager of Ice Cream Delights for each location. Fill in the blanks with the corresponding letter to show each location's Net Income, Average Investment and ROL. Location First Location Second Location Net Income Average Investment ROI A. 17.5% B. $800,000 C. 16% D. $140,000 E $2,000,000 F. $320,000Explanation / Answer
Answer:-
Explanation:-
1)- ROI of first location = Net income/ Total investment*100
=$320000/$2000000*100
=16%
2)- ROI of second location = Net income/ Total investment*100
=$140000/$800000*100
=17.5%
Location Net Income Average Investment ROI First Loaction F E C Second Location D B A