Question
Avocado Company has an operating income of $80,000 on revenues of $1,000,000. Average invested assets are $500,000, and Avocado Company has an 8% cost of
Avocado Company has an operating income of $80,000 on revenues of $1,000,000. Average invested assets are $500,000, and Avocado Company has an 8% cost of capital. What is the return on investment?
| a) | 8% |
| b) | 10% |
| c) | 16% |
| d) | 20% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Company Accounting
Authors: Ken Leo, Jeffrey Knapp, Susan Mcgowan, John Sweeting, Leah Meng
12th Edition
0730382672, 9780730382676
