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NEW QUESTION: 1
Return on investment = Net profit / Investment
where:Net profit = gross profit expenses.
Return on investment = (gain from investment - cost of investment) / cost of investment Subscriptions = 5,000 x 12 = 60,000 per annum
10 incidents @ 10,000 = 100.000 per annumreduce by 50% = 50,000 per annum Thus the rate of Return is -10,000 per annum and that makes for -$30,000 after three years.
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