Question: What is the formula for calculating Return on Investment (ROI)?

Options:

1. (Net Profit / Cost of Investment) * 100
2. (Cost of Investment / Net Profit) * 100
3. (Net Profit / Revenue) * 100
4. (Revenue / Net Profit) * 100

Correct Answer: (Net Profit / Cost of Investment) * 100

Solution:

ROI is calculated by dividing the net profit by the cost of investment and multiplying by 100.