Calculate as total assets less all liabilities


Question: Cost of capital is 10%  Net investment is calculated as total assets less all liabilities.  Critically evaluate performance for 2009 to 2011.

                                    ($000,000)

                         2009        2010        2011

Net income        $14.0       $14.3      $14.4

Total assets        125           130         135

Return on net

investment         20%         22%        24%

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Accounting Basics: Calculate as total assets less all liabilities
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