Return on investment (ROI) is the benefit an investment bring about, by comparing profits in relation to capital invested.
An organization is considering several projects with the following ROIs:
- ROI of Project A = 1.1
- ROI of Project B = 0.4
- ROI of Project C = 1.8
- ROI of Project D = 1.0
Based on this information, which is the best project to undertake?
A. Project A
B. Project B
C. Project C
D. Project D
Higher the better
The higher the ROI, the more favorable the project financially is to the organization.
Check more articles on Cost Management