Miss Piggy is considering a new investment in a boutique store. She has scouted three locations that could suit her needs. Based on the location her initial cost, annual operations and maintenance, and sales (revenues would also change. Please help Miss Piggy make a decision on the best location to choose using a ROR analysis. Miss Piggy uses a personal MARR of 11% and a 10 year planning horizon. Location A Location B Location C Initial Cost $250,000 $200,000 $300,000 Annual O&M $3,000 $5,000 $2,000 Costs Annual $47,000 $40,000 $45,000 Revenues Individual 11.86% 11.73% 7.15% ROR 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

Miss Piggy is considering a new investment in a boutique store. She has scouted three locations that could suit her needs. Based on the location her initial cost, annual operations and maintenance, and sales (revenues would also change. Please help Miss Piggy make a decision on the best location to choose using a ROR analysis. Miss Piggy uses a personal MARR of 11% and a 10 year planning horizon. Location A Location B Location C Initial Cost $250,000 $200,000 $300,000 Annual O&M $3,000 $5,000 $2,000 Costs Annual $47,000 $40,000 $45,000 Revenues Individual 11.86% 11.73% 7.15% ROR 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

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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