4.
6 Return of Investment
The table below shows that the initial investment is Php 1,112 for the
production of juice and sticky rice, followed by operating expenditures
which is Php 2,323for a total investment of Php 3,435. We calculate the
return on investment (ROI) by dividing the total profit by the total
investment, or 4,475 PHP by 3,435 PHP, and then multiplying the result
by 100%. 103 percent is the overall return on investment.
Cost of Investment Amount
Production of products PHP 1,112
Operating Expenditures PHP 2,323
Total Investment PHP 3,435
Total Profit = 4,575 PHP
Cost of Investment = 4,435 PHP
ROI = 1.03 x 100 %
ROI = 103 %