It helps management decide whether to proceed with a project or discontinue an underperforming one. Limitations of ROI While useful, ROI has specific drawbacks:
A high ROI might come with extreme risk, which the basic formula does not reflect. roi skachat pdf
ROI=Current Value of Investment−Cost of InvestmentCost of Investment×100%cap R cap O cap I equals the fraction with numerator Current Value of Investment minus Cost of Investment and denominator Cost of Investment end-fraction cross 100 % Alternatively: It helps management decide whether to proceed with
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It helps management decide whether to proceed with a project or discontinue an underperforming one. Limitations of ROI While useful, ROI has specific drawbacks:
A high ROI might come with extreme risk, which the basic formula does not reflect.
ROI=Current Value of Investment−Cost of InvestmentCost of Investment×100%cap R cap O cap I equals the fraction with numerator Current Value of Investment minus Cost of Investment and denominator Cost of Investment end-fraction cross 100 % Alternatively: