Net Profit before Interest and Tax Rs. 2,50,000; Capital Employed Rs. 10,00,000. Calculate Return on Investment.

SOLUTION

Net Profit before Interest and Tax = 2,50,000
Capital Employed = 10,00,000
Return on Investment = Net profit  Before Interest and Tax × 100 / Capital Employed
= 2,50,000 × 100 / 10,00,000
= 25%


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