PROFITABILITY EVALUATION I Q Return on Investment(ROD E Before Tax(ROIBt ROIBT = PBT/Total Investment-Wcap/ (This can be compared with other before-tax investment rates such as CD's and Corporate bonds E After Tax(ROAT ROIAT= CF / Total Investment-Wcapl This can be compared to other tax-exempt investments such as municipal bonds. 10/1899 Engineering economics ll10/18/99 Engineering Economics II 8 PROFITABILITY EVALUATION I t Return on Investment (ROI) ð Before Tax (ROIBT) ROIBT = PBT/[Total Investment - Wcap] (This can be compared with other before-tax investment rates such as CD’s and Corporate Bonds) ð After Tax (ROIAT) ROIAT = CF /[Total Investment - Wcap] (This can be compared to other tax-exempt investments such as municipal bonds.)