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Computation of return on investment
A company has calculated the following ratios for one of its investment centres:
Margin 25%
Turnover 0.5 times
What is the return on investment for this investment center?
a) 50.0%
b) 25%
c) 15.0%
d) 12.50%
XYZ Ltd paid= $200,000 for feasibility study on project about a year ago. You are needed to compute: The amount of the loan repayments. The accounting rate of return (gross and net).
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