We can deduce that the payback period is 4 years.
ROI table as follows (Click to Enlarge) :
I am not too sure what is the difference between ROI Total and ROI Annual. Anybody knows?
I know for a fact that ROI is just a percentage...
Saturday, April 18, 2009
Amit's NPV, Payback, ROI
NPV/Payback table as follows (Click to Enlarge) :
We can deduce that the payback period is 4 years.
ROI table as follows (Click to Enlarge) :
I am not too sure what is the difference between ROI Total and ROI Annual. Anybody knows?
I know for a fact that ROI is just a percentage...
We can deduce that the payback period is 4 years.
ROI table as follows (Click to Enlarge) :
I am not too sure what is the difference between ROI Total and ROI Annual. Anybody knows?
I know for a fact that ROI is just a percentage...
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Hi Denis,
ReplyDeleteHow have you been? busy with your work?
I found the below formula in Amit's note.
I hope this is what you want to know.
*Lifetime ROI =
(Cumulative Benefits –Cumulative costs)/Cumulative Costs.
*E.g. ($795,440 -$488,692)/$488,692 = 0.628 or 62.8%
*Yearly ROI = Lifetime ROI/number of years
Thanks Misa! Are my calculations correct?
ReplyDeleteYeah pretty busy indeed. I am working full time in CBD :)
*and yeah, now you know... I never read the lecture notes...
I think your calculations are correct. They are same as mine.
ReplyDeleteYou're such a hard worker:D Take care of yourself!