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7 April, 10:28

MC Qu. 84 Two investment centers ... Two investment centers at Marshman Corporation have the following current-year income and asset dа ta: Investment Center A Investment Center B Investment center income $ 530,000 $ 640,000 Investment center average invested assets $ 4,700,000 $ 3,100,000 The return on investment (ROI) for Investment Center A is:

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  1. 7 April, 13:32
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    The correct answer is 11.28%

    Explanation:

    Solution

    Recall that:

    Investment center A Investment center B

    Investment center income $ 530,000 $ 640,000

    Investment center average

    invested assets $ 4,700,000 $ 3,100,000

    Now,

    We calculate for return on investment (ROI) for Investment Center A

    The ROI A=Investment center income/Average invested assets which is

    = (530000/4,700,000)

    =11.28%
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