CMA Study Group

Hi,
Actually it should be divided by two to get the average of the annual investment, because the old scenario supposed to purchase the needed items at the beginning of each month so the purchased total amount will be declining on a monthly base till have an average amount equal to 3000/2 = 16500, like we are doing in calculating the ROA you are taking the Avr. total asset ( ending - biginning)/2. to get the actual result, if you take the total amount you will have a down stated ratio.