Parsa Inc. reported the following results from last year's operations: At the beginning of this year, the company has a $1,100,000 investment opportunity with the following characteristics:
The ROI for this year's investment opportunity considered alone is closest to:
A) 7.0%
B) 21.2%
C) 12.6%
D) 72.0%

Question

Parsa Inc. reported the following results from last year's operations:  At the beginning of this year, the company has a $1,100,000 investment opportunity with the following characteristics:
 The ROI for this year's investment opportunity considered alone is closest to:
A) 7.0% 
B) 21.2% 
C) 12.6% 
D) 72.0%

Quizplus · Accepted Answer

11eacbfc_c517_7fdc_8ffe_a9c49270d8de_TB7552_00 ROI = Net operating income ÷ Average operating assets = $138,600 ÷ $1,100,000 = 12.6%

Parsa Inc Reported the Following Results from Last Year's Operations