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Return on Investment (ROI)

ROI – Return on Investment

ROI calculates the amount of money returned by an investment as a
percentage ratio of the amount of money invested and does not consider time.
ROI is used to calculate the efficiency of a proposed investment.

The formula for ROI can be written two ways:

          (gain from investment - cost of investment)
ROI =

                          cost of investment

ROI =                       profit
                            cost
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