Return On Investment

Return On Investment

Introduction

Capital acquisition decision holds an immense importance for organizations, since it can improve quality; efficiency; and overall competitiveness while keeping the cost less and increasing these returns. Therefore, it is very much essential for organizations to use suitable metrics and estimate financial benefits as well as soft returns expected from the project, while considering the soft costs. If this ROI is positive i.e. soft returns are higher than soft costs, an investment or capital acquisition must be accepted otherwise not (Berman, 2007). Thus, capital acquisition decision asks organizations to appropriately evaluate the return on ...