Asked by Adrian Barrett on Jul 24, 2024
Verified
The ROI for the investment opportunity is closest to:
A) 7.0%
B) 128.0%
C) 21.2%
D) 22.4%
ROI
Return on Investment, a performance measure used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.
Investment Opportunity
A financial investment or venture that has the potential to yield returns.
- Examine the ROI outcomes for particular business situations.
Verified Answer
YZ
Yidan ZhangJul 30, 2024
Final Answer :
D
Explanation : 
ROI = Net operating income ÷ Average operating assets = $156,800 ÷ $700,000 = 22.4%
Reference: CH10-Ref3
Babak Industries is a division of a major corporation.Last year the division had total sales of $19,560,000, net operating income of $1,877,760, and average operating assets of $6,000,000.
ROI = Net operating income ÷ Average operating assets = $156,800 ÷ $700,000 = 22.4%Reference: CH10-Ref3
Babak Industries is a division of a major corporation.Last year the division had total sales of $19,560,000, net operating income of $1,877,760, and average operating assets of $6,000,000.
Learning Objectives
- Examine the ROI outcomes for particular business situations.