What is the Return on Investments?

An investment center of Zachary Corporation shows an operating income of $6,784 on total operating assets of $53,000.

Required
Compute the return on investment. (Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).)

Expert Solution

Return on Investments can be found by dividing Operating Income by Operating Assets

The Operating Income is $6,784

The Operating Assets is $53,000

Return on investment = Operating Income/ Operating Assets

Return on investment = $6,784 / $53,000

Return on investment = 0.128

Return on investment = 12.80%

The ROI is 0.128 or 12.80%

Christopher Mann answered 3 years ago

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