Business Studies

Business Finance

Hard

Radha Ltd has invested Rs. 100,000 in the business. Out of which Rs. 70000 is equity and Rs. 30,000 is debt. Net Profit after tax is 24,000. Calculate ROI

20%

25%

30%

40%

✅ Correct Option: 1

This question is marked DROP by NTA in the final answer key. ROI is typically calculated as (EBIT / Total Investment) $\times$ 100. The question gives only Net Profit after Tax (Rs. 24,000) and Total Investment (Rs. 1,00,000), so using PAT: $(24000/100000) \times 100 = 24\%$ , which is not in the options. Interest/tax details needed to compute EBIT are missing, so no listed option is correct.

Note: The NTA answer key marks this question as DROP due to insufficient data in the question.

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Radha Ltd has invested Rs. 100,000 in the business. Out of which Rs. 70000 is equity and Rs. 30,000 is debt. Net Profit after tax is 24,000. Calculate ROI

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