Asked by Hilary Sahagun on Jun 24, 2024
Verified
For the past year, the return on investment was:
A) 6%
B) 30%
C) 18%
D) 26%
Return on Investment
A measure of the profitability or efficiency of an investment, calculated as the net profit from the investment divided by its cost.
- Master the computation and criticality of Return on Investment (ROI).
Verified Answer
BB
Benlevite Ben IsraelJun 26, 2024
Final Answer :
C
Explanation :
ROI = Net operating income ÷ Average operating assets
= $45,000 ÷ $250,000 = 18%
= $45,000 ÷ $250,000 = 18%
Learning Objectives
- Master the computation and criticality of Return on Investment (ROI).