Purchase Solution

Calculate ROI

Not what you're looking for?

Ask Custom Question

Average operating assets are $110,000 and net operating income is $23,100. The company invests $25,000 in new assets for a project that will increase net operating income by $4,750. What is the return on investment (ROI) of the new project?

A) 21%
B) 19%
C) 18.5%
D) 20%

Purchase this Solution
Solution Summary

The expert calculates the ROI on a new investment of $25,000 in assets.

Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Motivation

This tests some key elements of major motivation theories.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Introduction to Finance

This quiz test introductory finance topics.

View More Free Quizzes
Related BrainMass Solutions

  • ROI Analysis Using Dupont Model

    For Firm E Firm E: Calculate Turnover $75,000.00 Net Income Calculate Average Total Assets $1,250,000.00 Sales 15% ROI C.For Firm F Firm F: Calculate Sales 12.60% ROI Calculate Margin 1,730,159.00 Average Total Sales

  • Using the DuPont Model to Compute ROI

    Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $150,000, sales of $2,500,000, and ROI of 15%. Calculate the firm's turnover and average total assets. c.

  • ROI Analysis using DuPont Model

    299481 ROI Analysis using DuPont Model ROI analysis using DuPont model. a. Firm D has net income of $27,900, sales of $930,000, and average total assets of $465,000. Calculate the firm's margin, turnover, and ROI. b.

  • ROI in health care

    423358 ROI in health care Why is it necessary to calculate ROI before investing in a new product or service? What unique challenges would a health care organization face when attempting to calculate a true ROI?

  • Roi Analysis using the Dupont Model

    Calculate the firm's margin, turnover, and ROI Firm E has net income of $75,000, sales of $1,250,000, and ROI of 15% Calculate the firm's turnover and average total assets.

  • ROI and operating income

    Thanks, Rahul Jain This provides the steps to calculate the ROI and operating income.

  • Tellco, Inc. - calculate ROI

    Calculate the ROI for Tellco, Inc for 2010 B. Calculate the ROI for Tellco, Inc for 2010 assuming that the $100,000 had been capitalized and depreciated over 10 years using the straight-line method. C.

  • Return on Investment

    To calculate ROI, you will need to have more information. There are several formulas that can be used to calculate ROI.

  • Calculating net income, margin and required sales

    Required a)Calculate net income, margin, sales required for Manyops,Inc., to achieve its target ROI as a manufacturing firm. b) Assume that average margin of maintenance services firms is 2.7%, and that the average ROI of such firms is 17%.

  • ROI and Performance Issues

    If his performance is based on ROI, will he be inclined to make the investment? Explain. We first calculate the ROI of the new investment. ROI is calculated as net income/investment. The ROI for the new investment is 500,000/3,000,000=16.6%.

View More Related Solutions