5. ROI Loan portfolio $1,000,000 From equity (risk capital @8%) $80,000 From deposits / others $920,000 Gross Interest spread 2% Utilization of portfolio 98% Interest income $19,600 Provision for losses 0.50% Income from loan portfolio $14,600.00 Administrative cost 0.60% Income before tax $8,600.00 ROE 10.75% Loan portfolio $1,000,000 $10,000,000 $100,000,000 $1,000,000,000 Net Income $8,600 $86,000 $860,000 $8,600,000 CAPEX $1,000,000 $1,000,000 $1,000,000 $1,000,000 ROI 0.86% 8.60% 86.00% 860.00% Periods (years) 116 11 1.16 0.12