Return on investment can be increased by which of the following events: (a) increasing operating income (b) increasing the amount of long-term assets (c) increasing debt capital (d) decreasing revenues

Return on investment can be increased by which of the following events: (a) increasing operating income (b) increasing the amount of long-term assets (c) increasing debt capital (d) decreasing revenues

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3MC: The third step for making a capital investment decision is to establish baseline criteria for...

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Question

Return on investment can be increased by which of the following events:

(a) increasing operating income

(b) increasing the amount of long-term assets

(d) decreasing revenues

Formula Formula ROI (%) = Net Income Principal Amount × 100

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