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RoR would depend upon essentailly two forms

Is the investment considered in isolation

or It is in reference ot portfolio managment

It will further be gauged by the

Length of time in which the returns are materialised

Expenses versus revenues generated

Circulation of the inventory, if any involved

Capital budgeting techniques must be considered before making the managerial decision to go ahead with the investment

Bottom line

RoR is important but it cannot be considered in isolation. Host of other determinants shall dictate the outcomes and must be included in the planning stage

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