Kristin is looking into a measure of how much money the HR department made from investing in a new performance evaluation system. While saving over $5,000 in payroll costs, the new system cost $3,500. Kristin is looking into investment return.
An indicator of an investment's profitability is the return on investment (ROI).ROI measures an investment's effectiveness by comparing the amount you paid for it to the amount you made.
How is the return on investments calculated?
An approximate indicator of an investment's profitability is its return on investment (ROI).ROI is calculated by dividing the new number by the investment's cost, then multiplying it by 100, then subtracting the investment's initial cost from its final value.
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