Varal co, had sale of $2500,000, total assets of $2,000,000 and owner;s equity of $1,000,000. Operating profit was $250,000 and net income ( after tax and interest) was $200,000. Return on investment ( or return on owner's equity) was

1. 10.0%

2. 12.5%

3.15.0%

4.20.0%

non of the answers are correct