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A Firm Has an Average Investment of $1,000 During the Year.During

Question 1

Multiple Choice

A firm has an average investment of $1,000 during the year.During the same time,the firm generates after-tax earnings of $150.
If the cost of capital is 10%,what is the net return on investment?


A) 10%
B) 5%
C) 12%
D) 15%

Correct Answer:

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