What are some effective techniques for measuring ROI?
An example of an AI chatbot conversation about ROI measurement techniques.
What are some effective techniques for measuring ROI?
There are several techniques for measuring ROI, including the simple ROI formula, the payback period, and net present value (NPV). Would you like to know more about any specific technique?
Can you explain the simple ROI formula?
Sure! The simple ROI formula is calculated as (Net Profit / Cost of Investment) x 100. It gives you a percentage that represents the return on your investment.
What is the payback period?
The payback period is the time it takes for an investment to generate enough cash flow to recover its initial cost. It's a useful measure for assessing risk.
How does net present value work?
Net Present Value (NPV) calculates the difference between the present value of cash inflows and outflows over a period of time. A positive NPV indicates a profitable investment.
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