Determine the asset intensity of a venture with the following financial information: net profit = $22,000; revenues = $132,000; return on assets 30%.
A).05
B).56
C)1.8
D)20

Name: Determine the asset intensity of a venture with the following financial information: net profit = $22,000; revenues = $132,000; return on assets 30%. A).05 B).56 C)1.8 D)20
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Question

Quizplus · Accepted Answer

Asset intensity is calculated as the inverse of the return on assets (ROA). Given the ROA is 30%, the asset intensity is 1/0.30 = 0.56.

Determine the Asset Intensity of a Venture with the Following