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. The return on investment (ROI) is

A) 57.9%
B) 172.3%
C) 5.0%
D) 115.0%

Return On Investment

A metric used to evaluate the efficiency of an investment, calculated as the profit from an investment relative to its cost.

Invested Assets

Resources put into a business by its owners or shareholders with the expectation of generating future income or profit.

Net Income

The amount of earnings remaining after all expenses, taxes, and costs have been subtracted from total revenue.