ABC Company that has current operating assets of one million and net income of P200,000 has an opportunity to invest in a project that requires an additional investment of P250,000 and an increase in net income by P40,000. After the investment, the company’s RoI will be • 17% • 18.2% • 19.2% • 21% • None of the above

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 16P
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ABC Company that has current operating assets of one million and net income of P200,000 has an opportunity to invest in a project that requires an additional investment of P250,000 and an increase in net income by P40,000. After the investment, the company’s RoI will be
• 17%
• 18.2%
• 19.2%
• 21%
• None of the above
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