Program A has a profit of $5,000 and an investment of $100,000, while program B has...
Program A has a profit of $5,000 and an investment of $100,000, while program B has a profit of $10,000 and an investment of $220,000. Which program has the better ROI?
Homework Answers
Project A
Return on Project A = Profit of Project A = $5000, Investment on Project A = $100,000
Return on Investment (ROI) of A = 5000/100000 = 0.05
Project B
Return on Project B = Profit of Project B = $10,000
Investment on Project B = $220,000
Return on Investment (ROI) of B = 10000/220000 = 0.04545455
ROI of Project A > ROI of Project B
Answer -> Project A has better ROI
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