Question

I want a project report about Rate of Return Analysis with references please.

- Introduction

- importance of rate of return to stakeholders

​​​​​​​- Benefits of rate of return

- analysis of rate of return

- examples

- application of rate of return

- conclusion

Answer 1

Introduction

• Rate of return is the net gain or net loss on the Investment made over a particular period of time which is expressed as a percentage of initial cost of Investment

Importance of rate of return to stakeholders

• Importance of rate to return to stakeholders is that it gives the stakeholders to take the decision as to invest in that particular company or not.Even it also gives the opportunity to make guesswork for the future return on your Investment.

Benefit of rate of return

• Rate of return is used in measuring the current performance of the company
• Helps to take decision on your Investment ,as higher the rate of return higher is the position of the company hence that company beill be selected.

Analysis of rate of return

• Rate of return is calculated by = (current value - initial value) /initial value × 100
• Higher is the percentage of rate of return higher is the position of company and you can choose that Investment

Examples -

Suppose initial value is $20000

Current value is $80000

Therefore

Rate of return = ($80000 - $20000)/$20000 × 100

Rate of return = 300%

Hence the rate of return on investment is 300% which is higher percentage therefore it is good for Investment