Answer:
1. 20%
2. 25.20%
3. 24.00%
Explanation:
1. The computation of return on investment is shown below:-
Return on investment = Operating income ÷ Average operating assets
= $70,000 ÷ $350,000
= 20%
2. The computation of return on investment (ROI) is shown below:-
Return on investment = Operating income ÷ Average operating assets
= ($70,000 + $18,200) ÷ $350,000
= $88,200 ÷ $350,000
= 25.20%
3. The computation of return on investment (ROI) is shown below:-
Return on investment = Operating income ÷ Average operating assets
= ($70,000 + $14,000) ÷ $350,000
= $84,000 ÷ $350,000
= 24.00%
So, we have applied the above formula.
Answer: Option B
Explanation:
A. Explicit cost are the cost paid to others in return of their service. Hence Option A is incorrect.
B. Revenue is the total amount of earnings a company have before deducting for expenses. Hence Option B is correct.
C. Accounting profit means (Revenue - explicit cost) . Hence Option C is incorrect.
D. Economic profit means (Revenue - explicit cost - implicit cost) . Hence Option D is incorrect.
Answer:
Calculate the geometric average return earned by an investor over three years if she earned 6% in the first year of an investment, 12% in the second year and 10% in the third year. 9.36% 9.27% 9.30% 9.33%
Explanation:
Calculate the geometric average return earned by an investor over three years if she earned 6% in the first year of an investment, 12% in the second year and 10% in the third year. 9.36% 9.27% 9.30% 9.33%
I believe the correct answer is C!
