Multiple Choice
A firm has an average investment of $10,000 during the year. During the same period, the firm generates after-tax income of $1,000. If the cost of capital is 15 percent, what is the net return on the investment?
A) 15 percent
B) −5 percent
C) 10 percent
D) 5 percent
Correct Answer:
Verified
Correct Answer:
Verified
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