Firms that compete in some aspects of business may actually cooperate in other business areas

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? a) Both the Phoenix and Chicago options b) Only the Phoenix option c) Only the Chicago option d) Neither the Phoenix nor the Chicago options

All of the following would contribute to a propertys obsolescence, except:

a. wear and tear from use. b. an outdated kitchen. c. flight patterns of airplane now fly directly over the property. d. outdated heating system.