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My company has an consistent ROI of 30%. I'm considering a new investment with an ROI of 25% over a one-year period. Is it a wise choice?

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15y ago

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How do you calculate ROI?

Definition of 'Return On Investment - ROI'A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The return on investment formula:


Are there measures other than ratio analysis to measure financial performance?

Here are a few other ways to measure financial performance... IRR = Internal Rate of Return ROI = Return on Investment DCF = Discounted Cash Flow


What is business performance management?

Return on investment


Is a measure of the efficiency of an investment?

The ROI is a measure of the efficiency of an investment. ROI is a term used in the financial world, it means return on investment.


What is a good time weighted return and how can it be calculated effectively?

A good time-weighted return is a measure of investment performance that eliminates the impact of cash flows. It is calculated by taking the geometric mean of a series of sub-period returns. This method is effective because it accounts for the timing and size of cash flows, providing a more accurate measure of investment performance over time.


What is the difference between the required rate of return and the expected rate of return in investment analysis?

The required rate of return is the minimum return an investor needs to justify the risk of an investment, while the expected rate of return is the return that an investor anticipates receiving based on their analysis of the investment's potential performance.


What is the difference between ROR and ROI and how can they be used to measure the success of a project or investment?

Return on Revenue (ROR) measures the profitability of a project by comparing the revenue generated to the costs incurred, while Return on Investment (ROI) calculates the efficiency of an investment by comparing the gains to the initial investment. Both metrics can be used to assess the success of a project or investment by providing insights into its financial performance and overall effectiveness.


What are the Martin Weiss ratings for this investment opportunity?

The Martin Weiss ratings for this investment opportunity are a measure of its potential performance and risk level.


What are the benefits of implementing a strategy to measure Return on Investment (ROI)?

Implementing a strategy to measure Return on Investment (ROI) can help businesses track the effectiveness of their investments and make informed decisions. It allows companies to identify which initiatives are generating the highest returns and allocate resources more efficiently. Additionally, measuring ROI can help businesses demonstrate the value of their investments to stakeholders and improve overall financial performance.


What describes annuity?

The rate of return on purchase payments will vary based on the performance of the chosen investment options.


How do you Calculate a Return on an Investment?

The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.


What is the personalized rate of return for my investment portfolio?

The personalized rate of return for your investment portfolio is the percentage increase or decrease in the value of your investments over a specific period, taking into account the individual assets and their performance in your portfolio.