Determine the October 20xx ROI (rounded to two decimal places) for an investment center with the following information: $\begin{array}{|l|l|}
\hline \text { Assets at September } 30,20 \mathrm{xx} & \$ 20,000,000 \
\hline \text { Assets at October } 31,20 \mathrm{xx} & 22,000,000 \
\hline \text { Assets at October } 15,20 \mathrm{xx} & 18,595,000 \
\hline & \
\hline \text { Operating income for the month ended October } 31,20 \mathrm{xx} & 5,000,000.0 \
\hline
\end{array}$
Operating income for the month ended October 31, 20xx 5,000,000.0

Question

Determine the October 20xx ROI (rounded to two decimal places) for an investment center with the following information: $\begin{array}{|l|l|}
\hline \text { Assets at September } 30,20 \mathrm{xx} & \$ 20,000,000 \
\hline \text { Assets at October } 31,20 \mathrm{xx} & 22,000,000 \
\hline \text { Assets at October } 15,20 \mathrm{xx} & 18,595,000 \
\hline & \
\hline \text { Operating income for the month ended October } 31,20 \mathrm{xx} & 5,000,000.0 \
\hline
\end{array}$
 Operating income for the month ended October 31, 20xx 5,000,000.0

Quizplus · Accepted Answer

The formula for ROI (Return on Investment) is:

ROI = Operating Income / Average Invested Assets

Since we are given only the operating income for the month of October, we cannot find the average invested assets. Therefore, we cannot determine the exact ROI for October.

However, we can make an estimate assuming that the invested assets remain constant. In this case, the ROI would be:

ROI = Operating Income / Invested Assets

To find the invested assets, we need additional information. Without that information, we cannot make an estimate of the ROI.

Therefore, the only possible answer is C, "Cannot be determined from the given information."

Determine the October 20xx ROI (Rounded to Two Decimal Places)