ROI and Residual Income
You are trying to determine which of two retail clothing stores would be a more beneficial investment to you. You have a minimum required rate of return of 7 percent and have collected the following information about the two stores:
Required:
Calculate the ROI and residual income for each store. Do not round your intermediate calculations. If required, round your answers to two decimal places. Do not include a percent sign as part of your answer.
Explain the meaning of your calculations.
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