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Start learning 50% faster. Sign in nowHere, Return on Investment (ROI) can be calculated using the DuPont formula. It uses the net profit margin and total asset turnover in the calculation of ROI. ROI = Net profit/total investment (or total assets) Since Asset turnover = Sales/Total asset and net profit margin = Net profit/sales), net profit/total asset, by multiplying Asset turnover and Net profit Margin , one can arrive at the ROI. As such, ROI = 5*3% = 15%.
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