Page tree

Versions Compared

Key

  • This line was added.
  • This line was removed.
  • Formatting was changed.

@wikipedia


Ratio of cash proceedsOne of the efficiency metrics of Financial Investment defined as ratio of Cash Return over amount of initial investmentInitial Investment:

LaTeX Math Block
alignmentleft
\rm ROI = \frac{Cash \ Return − Cost \ of \ ProceedsInvestment}{Initial \ Investment}

where

LaTeX Math Inline
body\rm Cost \ of \ Investment

consist of 

LaTeX Math Inline
body\rm Initial \ Investment
 and al types of additional expenses to facilitate  Cash Return


ROI is normally presented in percentage (120%, 300%, ...).

Alternatively it can be presented Usually denoted as multiplier of Initial Investment:

1XCash
 proceeds are equal to Initial
Return are equal to Initial Investment
2XCash
 proceeds are
Return are twice higher than Initial Investment
3XCash
 proceeds are
Return are three times higher than Initial Investment
......


See also

...

Economics / Investment / Financial Investment / Financial Investment Metrics