A small business that generates an additional profit of $25,000 for the year as a result of an investment of $100,000 in information systems would have a return on investment of 4 to 1.

Question

Quizplus · Accepted Answer

The return on investment (ROI) is calculated as the net profit divided by the cost of the investment. In this case, the ROI is $25,000 / $100,000 = 0.25, or 25%, not 4 to 1.

A Small Business That Generates an Additional Profit of $25,000