The return on investment for the business with the given financials are as follows,
Start-up costs $60,800
Gross sales $65,800
Total expenses $28, 500
Income taxes $6, 370
Overall expenditure $95670
Return on investment, $65800- $95670
= $-29870.
Return on investment is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost. It is most commonly measured as net income divided by the original capital cost of the investment.
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