What are some examples of ROI calculations?
ROI, or Return on Investment, measures the profitability of an investment. For example, if you invest $1,000 in a marketing campaign and generate $1,500 in sales, your ROI would be 50%.
Can you give me another example?
Sure! If you invest $5,000 in a new piece of equipment and it helps you save $1,000 a year in costs, your ROI over five years would be 100%.
How do I calculate ROI for my business?
To calculate ROI, use the formula: ROI = (Net Profit / Cost of Investment) x 100. This will give you a percentage.
What factors should I consider when calculating ROI?
Consider factors like time frame, total costs, potential risks, and alternative investment opportunities.
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