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What is the formulla of ROI?

Answer Posted / pavan kumar

Return on Investment means how much earning from the
investment of business.

ROI in Percentage = Net profit/Investment*100 .
ROI in Rupees =Net Profit/investment.

Net Profit=Gross profit- Interest.
Investment=Initial Investment for the business
Grossprofit=Turnover–Sales stock purchase value OR Margin %
on sale.
Turnover= Total Sales for the period of time.
Investment= Initial investment for the business (Fixed costs
and Variable costs)

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