If there are Fixed assets of ₹10,00,000, Current assets of ₹6,00,000, Current liabilities of ₹3,00,000 and Net profit before Interest and Tax of ₹2,60,000; then Return on Investment will be:
- A25%
- B30%
- C20%
- D15%
Solution & Step-by-step Explanation
Return on Investment () is calculated using the formula:
Where Capital Employed can be calculated as:
Substituting the values into the formula:
Where Capital Employed can be calculated as:
Substituting the values into the formula: