What is the impact of ROI on business strategy?
An example of an AI chatbot conversation about the role of ROI in shaping business strategies.
What is the impact of ROI on business strategy?
ROI, or Return on Investment, is crucial as it helps businesses evaluate the profitability of their investments.
Can you explain how to calculate ROI?
Sure! ROI is calculated by taking the net profit from an investment, dividing it by the initial cost, and multiplying by 100 to get a percentage.
How does a high ROI influence decision-making?
A high ROI indicates effective use of resources, leading to more confidence in making future investments and strategic decisions.
What are some common mistakes in calculating ROI?
Common mistakes include not considering all costs, using inaccurate data, or failing to account for the time value of money.
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