Return on investment

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Return on investment (also well known by its acronym, ROI; hereinafter, ROI) is the ration that is used to evaluate the efficiency of an investment in finance and economics.


Definitions

According to Juran's Quality Handbook by Defeo (7th edition),

Return on investment (ROI). The ratio of the estimated gain to the estimated resources needed.

According to the BABOK Guide (3rd edition),

Return on investment (ROI, business analysis). A measure of the profitability of a project or investment.

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