Return On Investment
Return on investment (ROI) is the gain from a choice divided by the money you put into it. A $200 investment that returns $800 has a higher ROI than a $2,000 investment that returns the same $800. An investor uses ROI to choose where savings go, such as into a stock or a down payment, and picks the option expected to return more. A business owner uses it the same way to decide which project, campaign, or piece of equipment gets the company’s money.
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