The following information was presented by Charlie Manufacturing Company for an asset purchased the previous year.
|Original cost of the asset||$12,500|
|Useful life of the asset||10||Years|
|Cash flow annual operating profit||$2,800|
|Salvage value||$ -0-|
What is the return on investment (ROI) assuming Charlie (a) uses the straight-line method for depreciation and (b) average net book values to compute ROI? (Round your final answer to 2 decimal places.) Select the correct answer:
Return on Investment:
Return on investment is a ratio of measuring the profit earned by the organization by their investment. This ratio is Jamali in percentage and used to evaluate personal financial decisions.
Answer and Explanation:
See full answer below.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Intro to Business: Help and ReviewChapter 25 / Lesson 6