John invested $250,000 into a business that earned a profit of $2,250 during the past month as shown below. John believes the business will earn an annual profit equal to twelve times the monthly profit. Assume John wants to take $20,000 from the business each year for his personal use.

Required
A. Determine the company€™s return on investment.
B. Determine John€™s return ofinvestment.

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Sales to customers Profit Return on investment per dollar invested Lewis $4,500,000 $412,500 Clark $5,625,000 $675,000 4.5% 7.5%