In: Finance
In addition to ROI , other business objectives that may be important in the choice of best alternative are as follows:
1)Long term sustainability: Business must consider long term sustainability of its business and likewise choose the alternative which fulfills its objective of long term sustainability irrespective of ROI.
2) Risk tolerance level: While choosing between alternatives we must also take into account the risk involved in earning the ROI.Higher the risk higher the ROI.Sometimes business may choose alternative with lower ROI because of its risk tolerance level.
3)Other Future intangible benefits : There are also other future intangible benefits associated with the alternatives which must be taken into consideration along with ROI while choosing among the alternatives.
4) Ethical considerations: Sometimes an alternative may yeild highr ROI but it may be unethical for the company.So tha company may drop that alternative even thoughbit has a higher ROI.