Calculate the ROI for a Project with Total Expected Costs

question 43

Multiple Choice

Calculate the ROI for a project with total expected costs of $40,000 and total expected benefits of 35,000.

• A) -12.5%
• B) 12.5%
• C) 1.875%
• D) 187.5%
• E) -18.75%

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Definitions:

Interest-Bearing Note

A debt instrument that pays interest to the holder until the maturity date, at which point the principal is repaid.

Interest

The cost of borrowing money or the return earned on an investment, typically expressed as a percentage.

Interest-Bearing Note

A debt instrument in which the issuer is obligated to pay a specified interest rate on the principal amount at regular intervals until maturity, in addition to repaying the principal.