What insight does ROI give into investment performance? Is it acceptable to lose profit on one product, if that product is vital to the sale of an extremely profitable product? Why?
Capital Budgeting Tools
There are a number of measures, both accounting and finance-related, which management uses to evaluate the viability of most types of capital investments. These measures include a variety of financial ratios, using future projections of the returns on the investment, including either increased profitability, increased cash flows, or a combination of both. Return on investment is one of those measures used to evaluate a capital investment.
Answer and Explanation:
- `What insight does ROI give into investment performance?
ROI calculates the percentage return on dollars invested. It allows for a comparison of...
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fromChapter 25 / Lesson 6