Question

Tom's Tool Factory is an investment center and is responsible for all of its net income and the use of its assets. This year, the invested assets totaled $475,000, and net income was $275,000. What is the return on investment

Answer 1

Answer:

57.9 %

Explanation:

Return on investment (ROI) is a financial ratio. It is used to measure the expected returns from in relation to the cost of investment.

The formula for calculating ROI is Net Income / Cost of Investment.

For tom tools factory, the ROI will be

net income $275,000

cost of investmet is $475,000

ROI = 275,000/ 475,000

RO1 = 0.5789473 X 100

=0.5789473

=57.894 OR

=57.9 %

Answer 2

The Return on investment is 57.9%.

Return on investment is a ratio used to measure the rate of return in relation to the cost of investment.

• The formula for deriving Return on investment is Net Income / Cost of Investment.

Given Information

Net income = $275,000

Cost of investment = $475,000

Return on investment = ($275,000 / 475,000) * 100

Return on investment = 0.5789473 * 100

Return on investment = 57.894%

Return on investment = 57.9 %

Therefore, the Return on investment is 57.9%.

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