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Then, she asks: recently, patel events plus purchased a new venue for our events. If we asked you to calculate the return on investment of this purchase, which metrics would you use?

Respuesta :

The net profit over time and the cost of the investment make up the two metrics that comprise return on investment.

Return on Investment (ROI): How Is It Calculated?

Divide the profit from an investment by the investment's cost to get return on investment (ROI). The ROI, or percentage return on investment, for an investment with a profit of $100 and a cost of $100, for instance, would be 1, or 100%. Despite being a quick and simple method to gauge an investment's effectiveness, ROI has some significant drawbacks. The time value of money, for instance, is not taken into account by ROI, and it can be challenging to effectively compare ROIs because certain investments will take longer to turn a return than others.

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