osef is a house flipper and works along with his brother Jonn. They like to invest in properties that make them a healthy turnover. The plan is to purchase a house at the courthouse auction for $75,000 and spend $100,000 in renovations. Their sales agent says after taking his commission, they should receive $190,000 on the sale of the renovated house. ROI (%) = (Net Profit/Cost of Investment) X 100 Which of the following is the correct statement about the ROI? Question 8 options: A) The correct return on investment is healthy at 108.57%. B) The agent says that ROI is 7.89% C) Josef thinks they are both wrong, the ROI is 3.7% D) Pooran calculates ROI at -8.6% E) ROI is 1.0857%
osef is a house flipper and works along with his brother Jonn. They like to invest in properties that make them a healthy turnover. The plan is to purchase a house at the courthouse auction for $75,000 and spend $100,000 in renovations. Their sales agent says after taking his commission, they should receive $190,000 on the sale of the renovated house. ROI (%) = (Net Profit/Cost of Investment) X 100 Which of the following is the correct statement about the ROI? Question 8 options: A) The correct return on investment is healthy at 108.57%. B) The agent says that ROI is 7.89% C) Josef thinks they are both wrong, the ROI is 3.7% D) Pooran calculates ROI at -8.6% E) ROI is 1.0857%
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
Section: Chapter Questions
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Josef is a house flipper and works along with his brother Jonn. They like to invest in properties that make them a healthy turnover. The plan is to purchase a house at the courthouse auction for $75,000 and spend $100,000 in renovations. Their sales agent says after taking his commission, they should receive $190,000 on the sale of the renovated house. ROI (%) = (Net Profit/Cost of Investment) X 100 Which of the following is the correct statement about the ROI? Question 8 options: A) The correct
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