The formula for calculating ROI is:
- (net income/ initial investment)* 100
- (gross profit / initial investment)* 100
- (net income/revenue)* 100
- (net income/cogs)* 100
Explanation
The formula for calculating ROI is indeed:
ROI = (Net Income / Initial Investment) * 100
ROI stands for (Return on Investment)
It is a financial metric
They measure the profitability and efficiency of an investment.
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