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What is ROI?
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Answer Posted / sribatsa pattanayak
Return on Investment (ROI) analysis is one of several approaches to evaluating and comparing investments. A good ROI means that investment returns compare favorably to investment costs.
In most ROI methods, an ROI ratio greater than 0.00 (or a percentage greater than 0%) means the investment returns more than its cost.
With the higher ROI is considered the better choice, or the better business decision.
CALCLATION FORMULA:
SIMPLE ROI=(GAINS-INVESTMENT COSTS)/INVESTMENT COSTS
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