Beall Industries Is a Division of a Major Corporation

question 60

Multiple Choice

Beall Industries is a division of a major corporation. Last year the division had total sales of $20,160,000, net operating income of $1,592,640, and average operating assets of $8,000,000.
-The division's return on investment (ROI) is closest to:

• A)19.9%
• B)16.6%
• C)1.6%
• D)5.7%

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Definitions:

Equivalent Cash Value

The cash amount equivalent to the value of a non-cash item, often used in contexts like insurance settlements or lottery winnings.

Monthly Payment

The specific amount of money paid each month, typically in the context of loans or leases.

Compounded Semi-annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, applied twice a year.

Amortization Period

Refers to the total time taken to pay off a debt in regular installments until the loan amount and interest are paid in full.