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Seguin Corp. just invested $3,750,000 in new blu-ray technology. Revenues realized from the investment during the period were $3,125,000 and expenses were $2,500,000.
-What is Seguin Corp's return on investment in the blu-ray technology (round to the nearest whole percentage)?
A) 17%
B) 20%
C) 67%
D) 83%
E) 600%

Question

Use the following information to answer questions 
Seguin Corp. just invested $3,750,000 in new blu-ray technology. Revenues realized from the investment during the period were $3,125,000 and expenses were $2,500,000.
-What is Seguin Corp's return on investment in the blu-ray technology (round to the nearest whole percentage)?
A) 17%
B) 20%
C) 67%
D) 83%
E) 600%

Quizplus · Accepted Answer

The return on investment (ROI) is calculated as (Net Profit / Investment) * 100. Net Profit is Revenues minus Expenses, which is $3,125,000 - $2,500,000 = $625,000. The investment is $3,750,000. So, ROI = ($625,000 / $3,750,000) * 100 = 16.67%, rounded to the nearest whole percentage is 17%.

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