[mdzaki]

I can’t understand the calculation of average investment cost. why the disposal price is added with 120000? and why the sum divided by 2?

average investment cost= initial cost+disposal price/2 !!!!!!

whats the explanation of this formula?

[mdzaki]

But why the Calculation of ROI is such like that in the book????
we know ROI = Net profit / Cost of investment.
In general sense, here the cost of investment is 120000.

But in this math, why does cost of investment includes disposal price (i.e 120000+15000) and why its multiplied by 0.5?

Is it a wrong calculation in BPP text? ??

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