energy saving proposal involves an investment of R 250 000 in an industry and is e ected to yield an average annual net saving of R 50 000/annum. The cost of borrowin the investment is 14%. Compute the return on investment (ROI) for this proposal a ate with valid reasons whether the investment is justified

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An energy saving proposal involves an investment of R 250 000 in an industry and is ex-
pected to yield an average annual net saving of R 50 000/annum. The cost of borrowing
of the investment is 14%. Compute the return on investment (ROI) for this proposal and
state with valid reasons whether the investment is justified
y
03
ST
SAVIE
6.
Transcribed Image Text:An energy saving proposal involves an investment of R 250 000 in an industry and is ex- pected to yield an average annual net saving of R 50 000/annum. The cost of borrowing of the investment is 14%. Compute the return on investment (ROI) for this proposal and state with valid reasons whether the investment is justified y 03 ST SAVIE 6.
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