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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...

This question was answered on Jul 20, 2016. View the Answer

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?

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

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Great question... View the full answer

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

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

The answer to this question... View the full answer

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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

here...................................... View the full answer

media%2Fcf8%2Fcf8dcd1a-2fde-433e-bfed-abb629a7a212%2FphphxBs46.png

 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

This question was asked on Jul 20, 2016 and answered on Jul 20, 2016.

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