SiuGuy007
New Member
- Joined
- Jun 19, 2015
- Messages
- 40
Looking to find out the correct formula to calculate the ROI Ratio Example 7:1. I am getting conflicting answers from my counterparts on how to compute this?
Here is the information; Avoided Cost is $503,913, Expenses are $60,585
1. Some say the correct method is; Avoided Cost/Expenses = ROI (7.31)
2. Other method is (Avoided Cost-Expenses)/Expenses = ROI (8.31)
Which is correct?
Once you have the answer, do you round it to 7:1 or 8:1?
Thank you in advance for your assistance!
SiuGuy
Here is the information; Avoided Cost is $503,913, Expenses are $60,585
1. Some say the correct method is; Avoided Cost/Expenses = ROI (7.31)
2. Other method is (Avoided Cost-Expenses)/Expenses = ROI (8.31)
Which is correct?
Once you have the answer, do you round it to 7:1 or 8:1?
Thank you in advance for your assistance!
SiuGuy
