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Question
Net Profit before Interest and Tax ₹2,50,000; Capital Employed ₹10,00,000. Calculate Return on Investment.
Sum
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Solution
Net Profit before Interest and Tax = 2,50,000
Capital Employed = 10,00,000
Return On Investment = `"Net Profit before Interest and Tax"/"Capital Employed" xx 100`
`= 250000/1000000 xx 100 = 25 %`
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