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A Comprehensive Guide for Any Business to Calculate Returns on Investment

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 Introduction: Calculating returns on investment (ROI) is a crucial aspect of evaluating the financial performance and profitability of any business. By measuring the efficiency of investments, ROI enables business owners and investors to make informed decisions and assess the viability of various ventures. In this post, we will provide you with a step-by-step guide on how to calculate ROI, accompanied by an example to illustrate the calculation process. R O I Formula Step 1: Determine the Initial Investment (Cost): The first step in calculating ROI is to identify the initial investment or cost associated with the project or business. This includes all expenses incurred at the outset, such as equipment, machinery, marketing costs, research and development expenses, and any other relevant expenditures. Example: Let's consider a hypothetical scenario where a small retail business invests ₹10,00,000 to set up a new store, including leasehold improvements, inventory, and marketing expe

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