Final answer:
Net operating income for calculating ROI includes income from normal operations presented after taxes. ROI calculation includes net operating income from normal operations and excludes interest expense and earnings from investments that are outside of normal operations. It is generally shown before taxes. The correct answer is D.
Step-by-step explanation:
The correct answer is d) includes income from normal operations is presented after taxes. When calculating return on investment (ROI), net operating income represents the income generated from the normal operations of a business after deducting all operating expenses. It does not include earnings from investments, interest expense, or income outside of normal operations. Additionally, net operating income is typically presented after taxes have been accounted for.
ROI calculation includes net operating income from normal operations and excludes interest expense and earnings from investments that are outside of normal operations. It is generally shown before taxes.
When calculating Return on Investment (ROI), it is important to correctly identify which income factors are included in the calculation. ROI measures the efficiency or profitability of an investment and typically includes the net operating income. Net operating income pertains to the income from normal business operations.
It does not include interest expense because this is a financing cost, not an operating cost. Moreover, earnings from investments outside of normal operations are also not included, as ROI focuses on the main business activities. Lastly, net operating income is typically presented before taxes, as ROI is calculated using pre-tax figures to assess the performance of the core business without tax strategy influences.