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A company made a profit of $75,000 over a period of 6 years on an initial investment of $15,000. What is its annualized ROI?

User Yomaris
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Answer:83.33%

Step-by-step explanation:

User Karandeep
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Its annualized ROI is 0.83 or 83%.

Since, $75,000 is the profit for 6 years, we must divide it by 6 to get the annual profit.

75000 / 6 = 12500 annual profit.

Return on Investment is equal to Net Profit divided by Total Asset.

In this case, the total asset is the initial investment of $15000.

ROI = 12500 / 15000 = 0.83
0.83 x 100% = 83 %.
User Brandon Henry
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