From the following information, calculate 'Return on Investment' : Particulars (<) Total Assets $\displaystyle 22,00,000$ $\displaystyle 10$% Debentures $\displaystyle 5,00,000$ Current Liabilities $\displaystyle 2,00,000$ Net Profit After Tax $\displaystyle 7,20,000$ Tax $\displaystyle 1,80,000$

Return on Investment = Profit Before Interest and Tax x $\displaystyle 100$ Capital Employed Profit Before Interest and Tax = Net Profit After Tax + Tax + Interest on Debentures = $\displaystyle 7,20,000$ + $\displaystyle 1,80,000$ + $\displaystyle 50,000$ = ` $\displaystyle 9,50,000$ Capital Employed = Total Assets – Current Liabilities = $\displaystyle 22,00,000$ – $\displaystyle 2,00,000$ = `$\displaystyle 20,00,000$ Return on Investment = $\displaystyle 9,50,000$ x $\displaystyle 100$ $\displaystyle 20,00,000$ = $\displaystyle 47.5$%