View the step-by-step solution to:

# A firm has an average investment of \$1000 during the year. During the same time the firm has an after tax earnings of \$150. If the cost of capital is...

A firm has an average investment of \$1000 during the year. During the same time the firm has an after tax earnings of \$150. If the cost of capital is 10%, what is the net return on investment?

A firm has an average investment of \$1000 during the year. During the same time the firm has an after... View the full answer

Great question... View the full answer

150 - 10%*1000 = 50... View the full answer

Solution:- Net return on Investment =... View the full answer

Answer: Total cost of capital = \$ 1000 x 10% = 100 After tax... View the full answer

1 comment
• hi, if you are satisfied with my answer and explanation kindly accept this as best answer:)
• nik18300
• Jul 20, 2016 at 11:33am

150 - 10%*1000 = 50... View the full answer

Solution:- Net return on Investment = (Net profit after tax/Average investment)*100 =(150/1000)*100 = 15% SAME ANSWER JUST... View the full answer

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents