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Originally Posted by BCOURTNEY
I was having what I thought was a pretty strange discussion with someone today. I then realized they live in an alternate universe from mine.
This is the right formula: ROI = (revenue – cost) / (cost)
This is the wrong formula: ROI = (revenue) / (cost)
No, I really don't think this is subjective.
e.g. a 15/1 odds horse pays $32.00.
The ROI for the investment is = ((32-2)/2) = 1500% (15:1)
The ROI for the investment is not (32/2) = 1600% (16:1)
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I'll bet you use that to pick up chicks at Mensa conventions.
