165 :- Net Profit before Interest and Tax Rs 6,00,000. Net Fixed Assets Rs 20,00,000; Net Working Capital Rs 10,00,000; Current Assets Rs 11,00,000. Calculate Return on Investment.
Solution :-
Capital Employed = Net Fixed Assets + Net Working Capital
= 20,00,000 + 10,00,000
= Rs 30,00,000
Return on Investment = Net Profit Before Interest and Tax/Capital Employed x 100
= 6,00,000/30,00,000 x 100
= 20%