Return on Investment

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ROI Formula

ROI = {(Current Value of Investment - Cost of Investment)/ Cost of Investment} x 100%

TRUE

ROI calculations can differ between businesses. (T or F)

FALSE - expressed in percentage

ROI is expressed as dollars or any other currency, and not as percentage, it can clear up confusion in currency value returns. (T or F)

Return on Investment (ROI)

is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. It tries to directly measure the amount of return on a particular investment, relative to the investment's cost.

TRUE

Not all the time just calculating the ROI can help you to choose better option for investment. (T or F)


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