Return on Investment

What is it?
Return on Investment (ROI) is an evaluation to determine the efficiency of an investment or used to compare several investments. The goal is to calculate the amount of return on a project relative to the cost of the project. This evaluation is usually not used in the health field or in health technology assessment because it requires benefits to be expressed in monetary values although the evaluation can still be helpful when planning a program that requires a very large sum of capital investments such as new hospitals.
How to Calculate ROI
There are two simple methods:
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1. ROI = Net Return on Investment x 100%
Cost of Investment
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2. ROI = Final Value of Investment -Initial
Value of Investment
Cost of Investment
