Answer :
The given statement in the question about return on investment is False.
You can compute return on investment as follows:- =
Net Income ÷ Average Assets × 100
= $9,000,000 / $40,000,000 x 100
= 22.5%
Since, the return is not 75% then the statement is False.
Your investment's return is the amount of money you receive. The typical definition of return on investment (ROI) is the ratio of net profit to the total cost of the venture. The best usage of ROI is for attaining your company's goals when it is utilized to assess the advantages and monetary returns of your investment. ROI is a rough indicator of how profitable an investment is. To calculate the return on investment, subtract the investment's initial cost from its final value, divide the result by the cost of the investment, and then multiply the result by 100. What qualifies as a "good" ROI will differ depending on a variety of factors, such as the investor's level of risk tolerance and the time it takes for an investment to start paying off.
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