Comments on: Return on Investment “ROI” Analysis

By: Tyrone

Tyrone — Sat, 14 Nov 2009 05:31:43 +0000

Hi Angiesa, do you have projected sales or cashflow as part of your FS? That’s a good gauge on how to know the projected ROI of your business.

If your FS is based on actual results of your business, then you just need to look at the NET INCOME. Compare that figure on the original capital you invested in your business. The time (in months or years) it takes for you to break even since you started operations is your ROI.

By: Angiesa Daug-daug

Angiesa Daug-daug — Fri, 13 Nov 2009 14:55:11 +0000

hi tyrone,

i have this internet cafe business, i hired a bookkeeper to process the montly payments to bir and to prepare financial reports. Now based on the FS i just wanna know how to compute the return on investment (how many months or years should i recover the cost of my investment based on her report)..my internet cafe operated for three months now. Can you give me an idea on how to determine the ROI based on the FS..

your reply is highly appreciated..

thanks

By: Tyrone

Tyrone — Sat, 24 Oct 2009 08:37:17 +0000

Hi Ariane, that would depend on what kind of business are you doing for your feasibility study.

More often, if the business your doing is new and not yet operating, you have to make some conservative estimates regarding income and expenses to gauge your ROI.

By: ariane

ariane — Sat, 24 Oct 2009 08:22:32 +0000

i just want to ask on how to make an ROI that i can use in my feasibility study

By: Tyrone

Tyrone — Fri, 23 Oct 2009 03:41:07 +0000

There are a lot more options for investments that yields higher interest than putting it in the bank. You can view my article on “where to invest extra cash”

http://www.millionaireacts.com/332/where-to-invest-extra-cash.html

However, bear in mind that the higher the return, the higher the risks involved.

By: LSM

LSM — Fri, 23 Oct 2009 03:05:12 +0000

I’d rather deposit my money to the bank, coz it’s much secured than lend it to a person.

By: Tyrone

Tyrone — Sun, 02 Aug 2009 02:45:44 +0000

Hi Enen, thanks for being a regular visitor of my blog. To answer your question, yes, there will be an adjustment in your monthly amortization. Definitely, the monthly amortization is dependent on the principal amount that needs to be paid so if you reduced the principal amount, therefore, you will pay less monthly amortization. So my advice is if you had a cash windfall and you have an existing mortgage, say a home mortgage, use that windfall to pay your mortgage for you to save a lot on interests expenses. Prioritize to pay the mortgage first rather than spending the windfall in expenses such as new gadgets, vacation trips, and others.

By: Enen

Enen — Sat, 01 Aug 2009 22:19:39 +0000

I’ve read almost all articles you have written man. But this one really got my interest. Very helpful. I just have a question though. Say for example you have a loan of 100% at fixed-interest rate of 1.5% for 24 months. In any case you pay half of the loaned amount, will there be a possible adjustment on your monthly amortization? I’m really curious about this.

Thanks! I’ll look forward to it.

By: reps

reps — Wed, 24 Jun 2009 23:43:59 +0000

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By: Money Hacks Carnival- March Madness Baby! | Good Financial Cents

Money Hacks Carnival- March Madness Baby! | Good Financial Cents — Wed, 18 Mar 2009 11:31:37 +0000

[...] Solee presents Return on Investment Analysis posted at Millionaire Acts, saying, “Everyone needs a high return for their investments. This [...]

By: admin

admin — Mon, 05 Jan 2009 23:49:43 +0000

Thanks Ken. =)

By: Ken

Ken — Mon, 05 Jan 2009 13:21:44 +0000

nice article man! Keep it up!