This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Here are the calculations for the return on investment for both questions. Question 1: Calculate the return on investment for XYZ. Step 1: Calculate the total cost of investment. Total Cost = Number of Units × Purchase Price Per Unit Total Cost = 1,000 units × N9/unit = N9,000 Step 2: Calculate the current market value of the investment. Current Market Value = Number of Units × Market Price Per Share Current Market Value = 1,000 units × N6/share = N6,000 Step 3: Calculate the Return on Investment (ROI). ROI = Current Market Value - Total CostTotal Cost × 100\% ROI = N6,000 - N9,000N9,000 × 100\% ROI = -N3,000N9,000 × 100\% ROI = -0.3333 × 100\% ROI = -33.33\% Question 2: What is the return on investment for JJC Nigeria Ltd? Step 1: Identify the cost of investment per unit. Cost of Investment Per Unit = N18 Step 2: Identify the current value of investment per unit. Current Value Per Unit = N14 Step 3: Calculate the Return on Investment (ROI). ROI = Current Value Per Unit - Cost of Investment Per UnitCost of Investment Per Unit × 100\% ROI = N14 - N18N18 × 100\% ROI = -N4N18 × 100\% ROI = -0.2222 × 100\% ROI = -22.22\% Got more? Send 'em!