A crash course on measuring ROI

Identifying the value of ROI is important to clearly demonstrate the financial gains of a proposed project. This tip offers methods for doing so.

 

 

Initial

Year 1

Year 2

Year 3

Cumulative Total

  Total Costs

$ 100,000

$  25,000

$  25,000

$  25,000

$ 175,000

  Total Benefits

$     ---

$ 200,000

$ 200,000

$ 200,000

$ 600,000

  Net Benefits

$ (100,000)

$ 175,000

$ 175,000

$ 175,000

$ 425,000

This was first published in May 2005

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