Answer:
The correct answer is 26.05%.
Explanation:
According to the scenario, the given data are as follows:
Beginning Assets = 12,888 ( million)
Ending Assets = 13,099 (million)
Operating profit = 3,385 (million)
So, Average Assets for the year = (12,888 + 13,099) ÷ 2 = 12,993.5 (million)
So, we can calculate the return on investment by using following formula:
Return on investment = Operating profit ÷ Average assets for the year
By putting the value, we get
Return on investment = 3,385 ÷ 12,993.5 (million)
= 0.2605 or 26.05%
