Engineering Board Exam Reviewer · Engineering Management · medium

A project requiring an investment of ₱2,000,000 earns a net annual profit of ₱300,000. What is its simple rate of return on investment?

  1. 6.67%
  2. 30%
  3. 1.5%
  4. 15%

Answer

D. 15%

Solution

ROI = 300,000/2,000,000 = 15%.

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