Return on Investment
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How do I calculate the Return on Investment or rate of return on a piece of medical equipment costing $70,000. How long will it take to break-even on the purchase?
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Solution Summary
This questions demonstrates the return on investment (ROI) calculation. It also addresses the issue of break-even point and the information necessary to determine at which level the break-even point occurs.
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To calculate ROI, you will need to have more information. There are several formulas that can be used to calculate ROI. The answer will be a decimal (which can be converted into a percentage) and therefore this represents the rate of return on the investment. The terms ROI and rate of return are often used interchangeably.
ROI = ...
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