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Which is a measure of the efficiency of an investment?

A.
return rate
B.
return on investment
C.
efficiency coefficient

User Dooburt
by
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2 Answers

5 votes

Answer:B ROI

Explanation:

User Mlowton
by
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6 votes

Answer:

The correct answer is option B. Return on Investment.

Explanation:

The return on investment is used when we want to measure the capacity of an investment, or compare it among several other investments.

Here the benefit of a certain investment will be compared in contrast to the money invested.

To calculate the return on investment there is a formula which will give us a percentage:

ROI = Margin on sales X asset turnover.

Now let's clarify what each of these things is:

Margin on sales: it is the result obtained from the calculation of benefits / sales.

Asset Rotation: this is the result obtained from the calculation of Average Total Sales / Assets.

User Derwrecked
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