ROI and RI

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

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June 20, 2016 at 12:08 pm #323566
sxhawty
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which of these are a feature of ROI or RI, or both..

1. Facilitate the comparison of performance of business units in difference size
2. ensure that managers will select investment projects with positive NPV
3. provide a relative measure of investment performance
4. based on profit rather than cash flow

Im sure that both of ROI and RI provides a relative measure of investment performance, but im unsure with 1,3 and 4 if it’s a feature of ROI, RI or both
June 20, 2016 at 4:26 pm #323624
John Moffat
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1 is a feature of ROI, but not of RI

2 is a feature more of RI but not of ROI

3 and 4 are features of both
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