Which of the Following Calculations Will Yield Return on Investment

question 64

Multiple Choice

Which of the following calculations will yield return on investment (ROI) ?

• A)annual net income/book value of investment
• B)average annual net income/book value of investment
• C)average annual net income/present value of investment
• D)book value of investment/annual net income

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Definitions:

Frederic Bastiat

A 19th-century French economist and writer known for his advocacy of classical liberalism and his witty criticisms of protectionism.

Trade Protectionism

Government policies designed to restrict international trade to protect domestic industries from foreign competition.

Government Restrictions

Regulations implemented by the government that limit or guide the actions of individuals or companies, often in the interest of public safety or economic stability.

Low-Wage Nation

A country where the general level of wages and salaries is significantly lower than that of more industrialized and economically developed countries.