A is corrent. One way of calculating ROI is net income divided by invested capital (equity). A is corrent because the amount of investment would be computed as follows: If ROI = 20% and net income = $50,000, then dividing $50,000 by 20% = $250,000.
B is incorrect because investment is computed by dividing net income by ROI.
B is incorrect because investment is computed by dividing net income by ROI.
D is incorrect because investment is computed by dividing net income by ROI.
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