ECONOMICS
COST BENEFIT ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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ROB
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BEP
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CBA
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ROI
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All True
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Detailed explanation-1: -The most common is net income divided by the total cost of the investment, or ROI = Net income / Cost of investment x 100.
Detailed explanation-2: -ROI is calculated by subtracting the initial cost of the investment from its final value, then dividing this new number by the cost of the investment, and finally, multiplying it by 100.
Detailed explanation-3: -The traditional ROI formula for training is the program benefits (net profit) minus the training costs and then divided by the program costs. This indicates the dollar amount returned as a benefit for every dollar spent on a program. This can also be converted to a percentage by multiply by 100.
Detailed explanation-4: -ROI = (net benefits/total cost) In the equation above, net benefits equals total benefits minus total cost. It is the incremental financial gain (or loss).