What is ROI , and would you start a project with lower or higher ROI ?

Return on investment (ROI) is the benefit to the investor resulting from an investment of some resource. A high ROI means the investment gains compare favorably to investment cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. In purely economic terms, it is one way of considering profits in relation to capital invested.Purpose In business, the purpose of the "return on investment" (ROI) metric is to measure, per period, rates of return on money invested in an economic entity in order to decide whether or not to undertake an investment. It is also used as indicator to compare different project investments within a project portfolio. The project with best ROI is prioritized.ROI and related metrics provide a snapshot of profitability, adjusted for the size of the investment assets tied up in the enterprise. ROI is often compared to expected (or required) rates of return on money invested. ROI is not net present value-adjusted and most school books describe it with a "Year0" investment and two to three years income.Marketing decisions have obvious potential connection to the numerator of ROI (profits), but these same decisions often influence assets usage and capital requirements (for example, receivables and inventories). Marketers should understand the position of their company and the returns expected

ROI (Return on Investment) is a profitability measure that evaluates the performance of a business by dividing net profit by net worth. Some businesses will grow the profits year after year. Others might see the profits decline as the business matures and heads out of business. So the proper way to calculate ROI is using the "cash flow method.

Return on investment isn't necessarily the same as profit. ROI deals with the money you invest in the company and the return you realize on that money based on the net profit of the business. Profit, on the other hand, measures the performance of the business.

 

According to me, projected ROI will most likely vary from the actual ROI due to multiple factors. However, one would never start a business with a Low Projected ROI.  Else, they have to introduce measure to increase the ROI. 

FIRST OF ALL I AM VERY THANK FL TO MAMDOUD ROI MEANS THE RETURN ON INVESTEMNT IF A PROJECT MORE BENEFITTED WHEN ROI  IS HIGHER IN OUR COUNTRY LIKE PPL , OGDCL , KAPCO, ETC IS BEST EXAMPLE OF INVESTEMNT IF A PROJECTS START NORMALLY LOW/HIGH RATIO DEPNEDS CONDTIONS ARE FAVOUABLE BUSNIESS / POLITICAL ETC

ROI is the terminology used for indicating efficiency of project in Economic terms. A higher ROI is an attractive feature for Project. It can be defined as = (Total Project Profits / Project Cost ) X100 expressed in percentage. 

Appreciate everyone, answered this question.

DEFINITION OF 'RETURN ON INVESTMENT - ROI'

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.

The return on investment formula:

 Return On Investment (ROI) =(Gain frominvestment  -  Cost of investment) / Cost of investment

In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.

ROI is return on investment. Higher ROI is the one of the factor in finalising the project during selection.

ROI is return oninvestment and everyone would like to start a project with the highest ROI, if possible.

The main objective of the investment is to get a return on these investments return on investment is the best way to measure profitability and performance management, a better measure of profit the same as the return on investment is the investment that is the basis for generating a profit. 

Investment in investment assets = creditors + the owners invest assets = debt + property rights

The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Return on investment, or ROI, is the most common profitability ratio.

And who would say no to higher returns in a legitimate way. So I will always try to  start a project with maximum attainable ROI within ethical boundaries.

ROI = Return On Investment

 

Concerning starting the project with Lower/Higher ROI, put in mind that if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.

But assume that i don't have other opportunities, i should start with any Positive ROI