[Alexandra]

Oh sorry I mean 4????
But I was thinking that in ARR we divided by 4 to find average profit, but why we need average for ROI, RI?

[Alexandra]

Thanks !
One more issue
If we have like profit
For 1,2,3,4 year
While calculating ARR
We are taking average like 1 year +2y+3y+4y and divided by 5
If we calculating roi we need only add 1year+2y+3y+4y without dividing by 5, right ?

[Alexandra]

Hi there I have a question , why when we calculate investment in ARR, we add the residual value to investment ?

Does it work the same for ROI (Profit /Investment )?
Should we as well add residual value to Investment in ROI or not ?

Many thanks

[Author]

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