“Return on Investment (ROI) and Cost Analysis” Please respond to the following:
- Imagine it is your task to calculate ROI for a hypothetical training program. Determine one key element that would factor into your calculation of ROI, and identify the aspect(s) of your hypothetical program that would make the element applicable and your calculation accurate.
- Based on the scenario, analyze the ROI of the training that was implemented, using the cost analysis approach.
Here’s the reply that one of my classmates provided:
Under the performance measure, Return on Investment ROI, the main factor to figure out is gain and cost from the investment. The sale of the investment attains the gains from it. This amount is comparable with the return attained from other ones. It allows a measure to make multiple investments. In the scenario of training, the investment for the first time on training would be $1000, and it will be sold against shares for $1200. The return on this investment can be obtained as
$1,200 – $1,000 = $200
The investment cost will be $1000 for the ROI of $200/$1,000, and its ratio will be 20%.