Question: Famous Bike Shops had $ 2 5 0 , 0 0 0 Net Profit and $ 1 , 0 0 0 , 0 0 0
Famous Bike Shops had $ Net Profit and $ in total assets last year. They have asked you to look at potential investments and recommend which investment they should choose based on Bike Shops projected ROA Return on Asset
Option will increase Net Profit by and will increase total Assets by $
Option has an ROA of
Option has an ROA of
Which option has the best ROA and consequently is the option you recommend?
Hint: you will have to do ROA calculations
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