COST PROCESS78Return on Investment Analysis

What:

Analyzing project costs and benefits.

When:

Project initiation and planning.

Results:

A quantitative assessment of a project’s overall financial worth.

Review ROI Methods

All project return on investment (ROI) estimates are predictive project metrics. ROI analysis estimates a project’s value by contrasting its costs and benefits (project-related monetary outflows and inflows). Because ROI calculations are based on future benefits estimates, which are often unreliable, the accuracy of ROI metrics can be highly variable.

Most ROI methods are based on the time value of money, assuming a discount rate (or interest rate) that makes a sum of money in the future less valuable than the same ...

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