You expect that a project will bring in USD 18,000 in revenue per year. You estimate it will cost $10,000 upfront. You also estimate costs of $100 per month for the first 12 months, which equals $1,200 per year. Using the formula (G-C) ÷ C = ROI, how would you calculate the project’s return on investment (ROI) after the first 12 months?

byGcourseAnswers -November 26, 2024

Q: You expect that a project will bring in USD 18,000 in revenue per year. You estimate it will cost $10,000 upfront. You also estimate costs of $100 per month for the first 12 months, which equals $1,200 per year. Using the formula (G-C) ÷ C = ROI, how would you calculate the project’s return on investment (ROI) after the first 12 months?

(18,000 - 11,200) ÷ 11,200 = 61%
(18,000 - 10,000) ÷ 10,000 = 140%
(18,000 - 11,200) ÷ 10,000 = 128%
(11,200 - 10,000) ÷ 18,000 = 5%

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