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With a $230,000 annual profit achieved from a $2,000,000 investment, the return on investment (ROI%) for a business would be

Sagot :

Answer:

  11.5%

Step-by-step explanation:

You want to know the ROI represented by a profit of $230,000 on an investment of $2,000,000.

ROI

The return on investment is the ratio of profit (return) to the investment:

  ROI = profit/investment

  ROI = $230,000/$2,000,000 = 0.23/2 = 0.115

  ROI = 11.5%

The return on investment would be 11.5%.