Asked by Akeim Potter on May 16, 2024
Verified
Tennill Inc.has a $1,400,000 investment opportunity with the following characteristics: The ROI for this year's investment opportunity considered alone is closest to:
A) 8.1%
B) 128.0%
C) 3.0%
D) 9.6%
Return On Investment
A performance measure used to evaluate the efficiency or profitability of an investment relative to the amount of money invested.
Investment Opportunity
A potential situation where an individual or organization can invest capital with the expectation of achieving a return.
- Determine and elucidate core financial metrics and performance ratios, including margin, turnover, and residual income.
Verified Answer
BM
Bruna MansurMay 17, 2024
Final Answer :
D
Explanation :
ROI = Net operating income ÷ Average operating assets = $134,400 ÷ $1,400,000 = 9.6%
Learning Objectives
- Determine and elucidate core financial metrics and performance ratios, including margin, turnover, and residual income.