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Business Finance

Description

Your company wants to develop special resources for project managers in its new project management office. There are many approaches to financial analysis of prospective projects. Having an idea of how project budgets can be created and controlled by upper management is essential to harmonizing efforts across the company.

  • As a project leader, demonstrate your understanding of the term Return on investment (ROI).
  • How would ROI influence a go or no-go decision on Enterprise Resource Planning (ERP) projects?
  • What are some of the disadvantages of using only Return on investment (ROI) to estimate the benefits of a new project?

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Explanation & Answer

Attached.

Running Head: RETURN ON INVESTMENT

Return on Investment
Student’s Name
Professor’s Name
Course Title
Institution
Date

1

RETURN ON INVESTMENT

2

Return on Investment
What it contains
Return on investment (ROI) measures the amount of money that a company or organization gets
whether profit or loss to the amount of money it had invested. It is calculated using percentage
and is used as a tool in realizing the financial constraints and freedom. It is also used for
personal financial decisions. On a wider motive, it compares a company’s profitability with the
efficiency of different investments. Its calculation is flexible and has many adverse uses. In our
company, we can use it to compare the ROI on the potential project. This attracts investors and
they will also use it to me...


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