The area manager of the Red, White, and Brew Restaurants is considering two possible expansion alternatives. The required investments, expected controllable margins, and the ROIs of each are as follows:
| Project |
|
Investment |
|
Controllable Margin |
|
ROI |
| Phoenix |
|
$120,000 |
|
$30,000 |
|
25% |
| Chicago |
|
$540,000 |
|
$50,000 |
|
9.25% |
The Red, White, and Brew segment has currently $2,000,000 in invested capital and a controllable margin of $250,000. Which one of following projects will increase the Red, White, and Brew division's ROI?