Answer :
The Return on Investment of an investment center is 21.38%.
Return on Investment = [tex]\frac{Net Income}{Average operating assets}[/tex] x 100
Net income = $100500
Average Operating Assets = $470,000
Thus, Return on Investment = [tex]\frac{100500}{470,000}[/tex] x 100
Return on Investment = 21.3829%
Return on Investment = 21.38%
An investment center is a business unit within a company that can use capital to directly contribute to the profitability of the company. You can compare and contrast terms like "profit center" and "cost center."
Companies assess an investment center's performance by comparing the revenues generated by capital asset investments to the total expenses. An alternative name for an investment center is an investment division.
A company's various departmental units are classified as either profit-generating or loss-making. Cost centers, profit centers, and investment centers are the three types of organizational departments. A cost center is evaluated based on how much money it spends on expenses.
To learn more about investment center, please refer:
https://brainly.com/question/16268924
#SPJ4
