Order 152117769.docx - Running head: BUSINESS MANAGEMENT...

This preview shows page 1 - 3 out of 3 pages.

Running head: BUSINESS MANAGEMENT1Business ManagementName of StudentInstitution Affiliation
BUSINESS MANAGEMENT2Business ManagementReturn on Investment (ROI) is the ratio between the net profit and the total cost ofinvestment. In our illustration, the initial buying price of the house is $500k. The additional costsamount to $200k, making the total cost of $700k. If the house is sold at $750k, the total returnsamount to $50k. The profit generates a ROI of 7.1%. A positive RIO simply means that thereturn is good, while a negative ROI means that the returns are bad. There are, however, differentfactors that affect the earnings. An investor should consider the market price, the associated risks,
End of preview. Want to read all 3 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Winter
Professor
DR. Onyango
Tags
Management, Return On Investment ROI, English language films

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture