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Given beginning operating assets of $140,000, ending operating assets of $180,000, net operating income of $40,000, and tax expense of $8,000, return on investment is equal to

1 Answer

8 votes

Answer:

25%

Step-by-step explanation:

Net Operating Income÷Avg Invested Assets

AVG Invested assets=140,000+180,000÷2

40,000÷160000=25%

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