Database Systems is considering expansion into a new product line.
Assets to support expansion will cos $500,000. It is estimated that
Database can generate $1,200.00 in annual sales, with a 6 percent
profit margine. What would net income and return on assest
(investment) be for the year?

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Clarification of Question by baseball2-ga on 23 Apr 2005 11:14 PDT

I could use an answer tonight if possible.

Baseball2 --

Impossible to answer unless we know the depreciation rate on those
assets and company tax rates.  Under any normal assumptions
(straight-line depreciation, tax rate of 35%) it's a major
money-loser.

Best regards,

Omnivorous-GA

Is there a formula for computing net income and return on assets?