- This topic has 1 reply, 2 voices, and was last updated 11 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
So, in (a) answers there is a note that a calculation of ROI would be acceptable as well.
Could you please show the application of ROI here?Thanks!
The model answer just looks at the annual net benefit of $95,025. However, it requires investment ot achieve this benefit and companies have to decide where best to spend their money. Hence ARR is mentioned in the examiner’s note:
I suppose that would be $95,025/(220,000 + 275,000) = 19%.
That ARR could be compared to a company target and to other uses of the money.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.