you are thinking about buying a vending machine and installing it at a nearby auto shop. the manufacturer of…

you are thinking about buying a vending machine and installing it at a nearby auto shop. the manufacturer of the machine claims that you can expect a 15% - 40% roi with this investment. based on the roi, would this be a good investment? choose 1 answer: a yes, because roi is positive and higher than 7% b no, anything less than 100% roi is a loss c no, this roi is not high enough

you are thinking about buying a vending machine and installing it at a nearby auto shop. the manufacturer of the machine claims that you can expect a 15% - 40% roi with this investment. based on the roi, would this be a good investment? choose 1 answer: a yes, because roi is positive and higher than 7% b no, anything less than 100% roi is a loss c no, this roi is not high enough

Answer

Brief Explanations:

  • ROI (Return on Investment) being positive indicates profit.
  • A range of 15% - 40% is well above the typical benchmark of around 7% for a good investment.
  • 100% ROI is an extremely high and often unrealistic expectation for most common investments.

Answer:

A. yes, because ROI is positive and higher than 7%