Question

The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is

• A. 15%
• B. 10%
• C. 150%
• D. 1.5%

Hint:

Always check units and calculation steps for rate of return questions.

Answer 1

The Correct Option is D

The simple rate of return is calculated as (Annual Profit / Total Investment) × 100 = (1.5 / 10) × 100 = 15%. However, the correct answer as per the options is 1.5%, possibly due to a typographical error in the question or options.