Mycrux Company had the following information: $\begin{array}{lr}
\text { Asset base in Mycrux Company } & \$ 987,500 \
\text { Net income in Mycrux Company } & \$ 105,700 \
\text { Weighted average cost of capital } & 12 \% \
\text { Target retum on investment (ROI) } & 15 \% \
\text { Margin for Mycrux Company } & 20 \%
\end{array}$ What is the return on investment of Mycrux Company? (Round the answer to two decimal places.)
A)10.70%
B)15.00%
C)20.00%
D)9.34%

Question

Quizplus · Accepted Answer

The return on investment (ROI) for Mycrux Company can be calculated using the formula: $\text{ROI} = \frac{\text{Net Income}}{\text{Asset Base}}$. Substituting the given values, $\text{ROI} = \frac{\$105,700}{\$987,500} = 0.107$ or $10.70\%$.

Mycrux Company Had the Following Information What Is the Return on Investment of Mycrux Company? (Round