Question

MC Qu. 84 Two investment centers... Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment Center A Investment Center B Investment center income $ 530,000 $ 640,000 Investment center average invested assets $ 4,700,000 $ 3,100,000 The return on investment (ROI) for Investment Center A is:

Answer 1

The correct answer is 11.28%

Step-by-step explanation:

Solution

Recall that:

Investment center A Investment center B

Investment center income $ 530,000 $ 640,000

Investment center average

invested assets $ 4,700,000 $ 3,100,000

Now,

We calculate for return on investment (ROI) for Investment Center A

The ROI A=Investment center income/Average invested assets which is

= (530000/4,700,000)

=11.28%