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All commercial organisations exist to make a Return On their Investment (ROI). Organisations that are not commercial, such as government departments and charities, still have to justify their investments in most cases. Money is a scarce resource and it is therefore reasonable to question how well it is spent whenever it is in any quantity. Indeed, most substantial sums of money require justification and the most frequently sought justification is the return on the investment - the ratio of money gained or lost on an investment relative to the amount of money invested. All substantial investments are scrutinised for their return. Different criteria are used in this justification, and typically the percentage annual return and the payback period are considered vitally important.

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Format:PDFSize:114 KB
Date:Jan 2009
Pages:8

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