COST PROCESS
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Return on Investment Analysis
| What: | Analyzing project costs and benefits. | |
| When: | Project initiation and planning. | |
| Results: | A quantitative assessment of a project's overall financial value. |
Review ROI Methods
All project return on investment (ROI) estimates are predictive project metrics. ROI analysis combines cost and benefit data (project-related monetary outflows and inflows). Because these calculations are based on future benefits estimates that may be overly optimistic, the accuracy of project ROI metrics can be highly variable.
Most ROI methods are based on the time value of money, assuming a discount rate (or rate of interest) that makes a sum of money in the future less valuable than the same sum of money ...
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