Question: Sinclair Wholesalers plc is currently considering opening a new sales outlet in Coventry. Two possible sites have been identified for the new outlet. Site A has a capacity of 30,000 sq. metres. It will require an average investment of £6 million, and will produce an average profit of £600,000 a year. Site B has a capacity of 20,000 sq. metres. It will require an average investment of £4 million, and will produce an average profit of £500,000 a year. What is the ARR of each investment opportunity? Which site would you select, and why?