Answer:
The correct answer is option B. Return on Investment.
Step-by-step explanation:
The return on investment is used when we want to measure the capacity of an investment, or compare it among several other investments.
Here the <u>benefit of a certain investment will be compared in contrast to the money invested. </u>
To calculate the return on investment there is a formula which will give us a percentage:
ROI = Margin on sales X asset turnover.
Now let's clarify what each of these things is:
Margin on sales: it is the result obtained from the calculation of benefits / sales.
Asset Rotation: this is the result obtained from the calculation of Average Total Sales / Assets.
Right now the dirt bike is worth $500. Next year it will be worth 15% less, or 85% of the current value (because currently it's at 100%, so you would subtract the 15%). To find 85% of the dirt bike's value, you would take $500 and multiply by 85% (or 0.85). This would give you $425 after 1 year. You'd take $425 and multiply that by 85% for the next year, and continue until you reached 5 years of the value decreasing. Does this help?
If you're just looking for the simplified equation that would be : 5t + 28 = 6t - 34
But if you're looking to find the value of "t" that would be : t = 62
If then, you are looking for the answer to the equation with t inserted, the equations are equal both sides equal : 338
I hope that answered your question. If not, lmk.
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