Question

Two investment centers at a large corporation have the following current-year income and asset data:  Investment Center A Investment Center BInvestment center income$415,000 $525,000  Investment center average invested assets$2,400,000 $1,950,000   The return on investment (ROI) for Investment Center B is:

Answer 1

Answer:

26.923%

Explanation:

Return on Investment

$\frac{return}{investment}$

Center B

return 525,000

investment 1,950,000

ROI 525,000 / 1,950,000 = 0,26923076923 = 26.923%

Is metric is used to determinatethe efficiency of the assets. It compares the generated amount with the investment account.

The investment yields 26.923% of the principal