Commerce Exam  >  Commerce Questions  >  The average net profits expected to a firm in... Start Learning for Free
The average net profits expected to a firm in future are Rs 68,000 per year and capital invested in the business by the firm is Rs 3,50,000. The rate of interest expected from capital invested in this class of business is 12%. The fair remuneration of the manager is estimated to be Rs 8,000 for the year.?
Most Upvoted Answer
The average net profits expected to a firm in future are Rs 68,000 per...
Calculation of Return on Investment


  • The net profits expected to a firm in the future is Rs 68,000 per year.

  • The capital invested in the business by the firm is Rs 3,50,000.

  • The rate of interest expected from capital invested in this class of business is 12%.

  • The fair remuneration of the manager is estimated to be Rs 8,000 for the year.



Calculation of Return on Investment (ROI)


  • The return on investment (ROI) is calculated as follows:

  • ROI = (Net Profits / Capital Invested) x 100

  • ROI = (68,000 / 3,50,000) x 100

  • ROI = 19.42%



Evaluation of ROI


  • The ROI of 19.42% is higher than the expected rate of interest of 12%.

  • This indicates that the investment is profitable and the firm is generating good returns.

  • The fair remuneration of the manager is estimated to be Rs 8,000 for the year, which is a reasonable amount.

  • The ROI can be used to measure the performance of the business and to make decisions about future investments.



Conclusion


  • The firm is generating good returns on the capital invested, with an ROI of 19.42%.

  • The fair remuneration of the manager is estimated to be Rs 8,000 for the year.

  • The ROI can be used to measure the performance of the business and to make decisions about future investments.

Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Similar Commerce Doubts

Top Courses for Commerce

The average net profits expected to a firm in future are Rs 68,000 per year and capital invested in the business by the firm is Rs 3,50,000. The rate of interest expected from capital invested in this class of business is 12%. The fair remuneration of the manager is estimated to be Rs 8,000 for the year.?
Question Description
The average net profits expected to a firm in future are Rs 68,000 per year and capital invested in the business by the firm is Rs 3,50,000. The rate of interest expected from capital invested in this class of business is 12%. The fair remuneration of the manager is estimated to be Rs 8,000 for the year.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The average net profits expected to a firm in future are Rs 68,000 per year and capital invested in the business by the firm is Rs 3,50,000. The rate of interest expected from capital invested in this class of business is 12%. The fair remuneration of the manager is estimated to be Rs 8,000 for the year.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The average net profits expected to a firm in future are Rs 68,000 per year and capital invested in the business by the firm is Rs 3,50,000. The rate of interest expected from capital invested in this class of business is 12%. The fair remuneration of the manager is estimated to be Rs 8,000 for the year.?.
Solutions for The average net profits expected to a firm in future are Rs 68,000 per year and capital invested in the business by the firm is Rs 3,50,000. The rate of interest expected from capital invested in this class of business is 12%. The fair remuneration of the manager is estimated to be Rs 8,000 for the year.? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of The average net profits expected to a firm in future are Rs 68,000 per year and capital invested in the business by the firm is Rs 3,50,000. The rate of interest expected from capital invested in this class of business is 12%. The fair remuneration of the manager is estimated to be Rs 8,000 for the year.? defined & explained in the simplest way possible. Besides giving the explanation of The average net profits expected to a firm in future are Rs 68,000 per year and capital invested in the business by the firm is Rs 3,50,000. The rate of interest expected from capital invested in this class of business is 12%. The fair remuneration of the manager is estimated to be Rs 8,000 for the year.?, a detailed solution for The average net profits expected to a firm in future are Rs 68,000 per year and capital invested in the business by the firm is Rs 3,50,000. The rate of interest expected from capital invested in this class of business is 12%. The fair remuneration of the manager is estimated to be Rs 8,000 for the year.? has been provided alongside types of The average net profits expected to a firm in future are Rs 68,000 per year and capital invested in the business by the firm is Rs 3,50,000. The rate of interest expected from capital invested in this class of business is 12%. The fair remuneration of the manager is estimated to be Rs 8,000 for the year.? theory, EduRev gives you an ample number of questions to practice The average net profits expected to a firm in future are Rs 68,000 per year and capital invested in the business by the firm is Rs 3,50,000. The rate of interest expected from capital invested in this class of business is 12%. The fair remuneration of the manager is estimated to be Rs 8,000 for the year.? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev