return on investment calculation

5 Return On Investment Calculation Tips

Posted on: February 8, 2007May 2, 2007

Return on investment calculation is critical to using ROI for prioritizing requirements. We’ve discussed how to forecast return on investment by estimating costs and predicting benefits. Here are five tips to help you when calculating return on investment.

The following ROI calculation tips are detailed in this article:

1. Recognize the Risks
2. Discount Future Cash Flows
3. Separate Sales From Expenses
4. Overcome Ozymandias Syndrome
5. Ignore Infinite Elvises

Read on for the details…

Definition of ROI – Return on Investment

Posted on: February 1, 2006April 30, 2007

We talk about ROI all the time – what is it, in layman’s terms? ROI is the acronym for return on investment. Another way to think of it is “How much profit will we make if we invest in this project?” Profit is revenue minus costs. Technically, the question should […]