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The total capital of Uranium Private Limited is Rs. 50 lacs. The amount of debt is Rs.20 lacs. The company has earned a profit of Rs.10 lacs during the current financial year. Its return on investment (ROI) for the present year is
20%
40%
10%
80%
- Total capital of Uranium Private Limited: Rs. 50 lacs.
- Debt amount: Rs. 20 lacs.
- Profit earned: Rs. 10 lacs.
- ROI calculation: ROI is calculated as (Profit / Total Capital) * 100.
- Here, (10 lacs / 50 lacs) * 100 = 20%.
- Option 1: 20% - This represents the correct calculation.
- Option 2: 40%
- Would imply a profit of Rs. 20 lacs on Rs. 50 lacs capital, which is incorrect for this scenario.
- Option 3: 10%
- Would imply a profit of Rs. 5 lacs on Rs. 50 lacs capital, which doesn't match the given data.
- Option 4: 80%
- Would imply a profit of Rs. 40 lacs on Rs. 50 lacs capital, clearly too high here.
Correct Answer: Option 1 - 20%
By: santosh ProfileResourcesReport error
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