Answer:
100%
Step-by-step explanation:
The formula to calculate the return on investment is:
ROI=(Net Profit/Total Investment)*100
Net profit=Revenues-expenses=500-(500*0.6)=500-300=200
Total investment=250-(250*0.2)=250-50=200
Now, you can replace the values:
ROI= (200/200)*100
ROI= 100%
According to this, the answer is that If Angelo Company can reduce its capital investment by 20% in Adams Company, return on investment will be 100%.
