is an ROI of 4 or 400% good to expand a company? Corporate training HRL 431

is an ROI of 4 or 400% good to expand a company?

Corporate training HRL 431

Solutions

Expert Solution

Return on investment (ROI) is a bussiness tool used to measure the income earning ability of various investment. ROI is measuring the perfomance of various investment rather than considering the cost of such inestments. ROI is calculated by dividing the return from an investment with the cost of such investment. The resultant figure will be expressed as a percentage or a ratio.The formula for ROI is as follows :-

ROI = ( current value of investment - cost of investment ) / cost of investment

The ROI can also be expressed in terms of amount which is = ( current value of investment - cost of investment )

In the given cases,Ie ROI = 4 and ROI = 400%,

ROI 4 means company is getting a return of $4 from the investment.

ROI = 400% is good to expand the company.because ROI 400% means the company is able to make a return of 4times of the cost of such investment.

Since the return of the second cases is much higher, Ie 400% the company can easily expand through the investment returns.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Whole Foods is a good example of a company which practices the good corporate culture to establish a good strategy execution process.

Whole Foods is a good example of a company which practices the good corporate culture to establish a good strategy execution process. The purpose of the company is to provide people with high quality organic products. This lighten up the values, principles and ethical goals of the company which is to provide safe foods to their consumers. This purpose of the company boost up the energy of their interdependent stakeholders and as a result makes their employees more efficient at...

Will investors pay extra for the shares of a company with good corporate governance? give a...

Will investors pay extra for the shares of a company with good corporate governance? give a study cases

What is Corporate Governance? Identify the objectives of the good corporate governance.

What features should come with a good training site?

. The following is the annual demand function for good A: QDA = 400 –...

. The following is the annual demand function for good A: QDA = 400 – 20PA + 10PB + 0.01Y where PA is the price of good A; PB is the price of another good, good B; Y is income. Is good A a normal good or an inferior good? Explain. Is good B a complement or a substitute for good A? Explain. Assume that the current price of good B is £5, income is £50 000, and the...

Cost-Benefit Analysis/ROI Project Topic: - To develop training programs internally instead of sending employees to external...

Cost-Benefit Analysis/ROI Project Topic: - To develop training programs internally instead of sending employees to external training providers Company Type: - Healthcare organization Competitive Analysis: Summarize the experience other companies are having with this type of investment *This is what I had in mind but need further help please: How are other potential health organizations dealing with having a new internal training program? Conclusion: Recap recommendations and why this investment is beneficial *This is what I had in mind but...

What is a corporate-level strategy and why is it important? 400 words

It has been said that good corporate governance is an important ingredient in corporate success and...

It has been said that good corporate governance is an important ingredient in corporate success and that regulators should encourage good corporate governance. Required Discuss how good corporate governance is encouraged in Australia.

A corporate trainer administered a test to eight employees prior to their participation in a training...

A corporate trainer administered a test to eight employees prior to their participation in a training program. The trainer administered the test again after participation. Raw test scores from each administration are as follows: Test-Taker First Administration Second Administration John 6 6 Doug 5 4 Christina 8 7 Sammy 4 2 Todd 4 8 Terri 2 1 Abel 6 7 Theresa 3 3 Answer the following questions 1. What is the test-retest reliability coefficient for the test? 2. What is...

31. The following is the annual demand function for good A: QDA = 400...

31. The following is the annual demand function for good A: QDA = 400 – 20PA + 10PB + 0.01Y where PA is the price of good A; PB is the price of another good, good B; Y is income. Is good A a normal good or an inferior good? Explain. Is good B a complement or a substitute for good A? Explain. Assume that the current price of good B is £5, income is £50 000, and...

Subjects