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114adamsr
Dec 8, 2016, 12:55 PM
If the sales of a company is 4.55 billion, cost 3.5 billion, (making profit 1.05 billion), and investment 75 billion, (Investment is the actual net asset value), what would the performance measures be? I have tried to calculate ROI, using income/investment x100 which gave me 1.05/75 x 100 = 140% which can't be right?

paraclete
Dec 8, 2016, 03:30 PM
wacky maths 1.05/75=0.014 x 100=1.4% when solving equations approximate the answer it will give you perspective regarding the result.

ma0641
Dec 8, 2016, 04:30 PM
1.05/75 x 100 = 140%? How can you have a number greater than 1 by dividing 1.05?75? You need a new calculator. 1.4% is correct