Question
In: Finance
Describe and apply steps in implementation process of ROI.
Describe and apply steps in implementation process of ROI.
Solutions
Expert Solution
Return on investment process is a balanced approach of determination of the appropriate return which should be generated out of investment by ascertainment of the overall cost and determination of risk along with segregation of cost from others in order to find out the overall rate of return by implementation of six steps they are listed as follows-
A. Reaction and planned action is first step in relation to the return on investment process in evaluation planning and we will also be gathering data through questionnaires and interview.
B. Learning- then we will be trying to learn through detailed questionnaires along with feedback and written test
C. Application and implementation- we will be trying to to apply through follow up questionnaire and follow up surveys and observations on the job
D. Business structure- we will then try to implement these findings into the business structure in order to find out of return on investment
E. Return on investment- return on investment will be found out in order to calculate the ultimate measure of the success of the project so that company can determine whether to undertake the project or not
F. Intangible- we will also ascertain the intangible benefits which are associated with the project and we are deciding it not to convert into the money
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