Average operating assets are $110,000 and net operating income is $23,100.The company invests $25,000 in new assets for a project that will increase net operating income by $4,750.What is the return on investment (ROI)of the new project?
A)21%
B)19%
C)18.5%
D)20%

Question

Quizplus · Accepted Answer

ROI = Net operating income F1F1F1S1F1F1F10 Average operating assets
= $4,750 F1F1F1S1F1F1F10 $25,000 = 19%

Average Operating Assets Are $110,000 and Net Operating Income Is