What will be the cost of investment if net profit is 200 and return on investment is 50%?
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Explanation:
ROI is a simple ratio of the gain from an investment relative to its cost. It is as useful in ... The ROI calculation has "net return" rather than "net profit or gain" in the numerator. This
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Cost of investment = 400
Explanation:
Given:
Net profit during the year = 200
Return on investment = 50% = 50 / 100 = 0.50
Cost of investment = ?
Computation of Cost of investment:
Return on investment = Net profit during the year / Cost of investment
0.50 = 200 / Cost of investment
Cost of investment = 200 / 0.50
Cost of investment = 400
Therefore Cost of investment is 400.
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