Final answer:
The formula for determining net profit is Net profit = Value of investment - Cost of investment. It is used to calculate the amount of money that remains after subtracting the cost of investment from the value of investment.
Step-by-step explanation:
The formula for determining net profit is:
Net profit = Value of investment - Cost of investment
Net profit is the amount of money that remains after subtracting the cost of investment from the value of investment. This formula is commonly used in business to evaluate the profitability of an investment.
For example, if the value of an investment is $100,000 and the cost of the investment is $80,000, then the net profit would be $20,000 ($100,000 - $80,000).
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