Return on investment (ROI) compares an investment's net benefit with a defined investment base. A common calculation divides net investment result by investment cost and multiplies by 100. Specify included proceeds and expenses, currency and observation period because ROI has several conventions.[1]
For a packaging machine, include relevant savings and additional running costs rather than substituting revenue for net benefit. Ordinary ROI does not automatically account for duration: equal percentages over different periods are not equivalent. Separate forecast from realised results and examine the related cash commitments too.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.