. The D. a vevenoe cenme revennes of 750,000 resing in an oering ome of 883,n Aveng invested assets al 537500, the esn of cnpiial t 1o B.14% C$37,500 D. $15,000 3. Alma Inc, has revenues of $750,000 renultins in an operating income of $52,500. Avernge nvested assets total $375,000, the cost of capital is 1o% Return on investment is A.7% . 14% C. $37,500 D. $15,000 Which of the following is not a limitation of return on investment? A. Use of ROI may lead to goal incongruence. B. ROI is a lagging indicator of financial performance. C. ROI evaluates the short-term. D. ROI is a commonly used measure for financial performance 4. Homer Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $100,000. The equipment will have an initial cost of $400,000 and have a 5-year life. If the salvage value of the equipment is estimated to be $75,000, what is the annual net cash flow? A. $25,000 B. $35,000 C. $165,000 D. $175,000 5. Belmont Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $200,000. The equipment will have an initial cost of $1,000,000 and have an 8-year life. If there is no salvage . value of the equipment, what is the payback period? A. 1.6 years B. 3.08 years C. 5 years D. 8 years