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ID #1223


What is ROI?
Title:  Counting Profit
ROI is Return on Investment.  It is used to make an economic forecast for a project or, more specifically, an investment.  ROI, or return for short, may include monetary and/or non-monetary investment.  It is a formula which compares and evaluates the numerous investment choices available.  The important elements in the ROI formula are the following:  net benefits, costs, and time period.
Net benefits will be computed if the associated costs of the project will be subtracted from the actual benefits.
Costs include everything that was used in order to get the net benefits of a certain project.
Time Period determines the amount of time needed to come up with a rough estimate of the benefits and costs.

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Last update: 2008-03-05 05:40
Author: AMB
Revision: 1.0

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