return on investment
high perceived value and low perceived risk/complexity
projects like these are rare jewels (ex. personal development)
low perceived value and low perceived risk/complexity
questionable projects, tend to comprise a large % of IT portfolios
the weighted average cost of capital
the true total cost of an investment
a positive ROI
where B > C
rate of return
(total benefits - total costs) / total investment
return on investment (ROI)
a technique to calculate the relationship between benefits and cost
opportunity cost
foregone investment income or interest; foregone revenue from other procedures if investments were made differently
high perceived value and high perceived risk/complexity
good investment, but needs detailed project management (ex. new drugs/vaccines)