Understanding Return on Investment

Sending an SOS when it comes to ROIs?

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UNDERSTANDING RETURN ON INVESTMENT

Return on investment (ROI) plays a major role in business, but itcan be a difficult concept to grasp. Understanding Return onInvestment shows you how to better utilize this essential tool bysimplifying and clarifying all its important points. Thisinvaluable guide includes information on:
* The effect of ROI on investment and disinvestment decisions
* The various forms of ROI and how they provide different measuresfor evaluating investment activities
* The relationship of ROI to ROE (return on equity)
* The use of ROI in evaluating investment centers in adecentralized operation
* How ROI is used to evaluate managers
* The use of weighted average cost of capital (WACC) in makinginvestment decisions

If you use ROI, but are confused or unclear about some of itsdetails, you'll definitely profit from Understanding Return onInvestment, a complete guide to this all-important performanceindicator.

GEORGE T. FRIEDLOB is Professor and Institute Auditors ResearchFoundation Faculty Fellow in the School of Accountancy at ClemsonUniversity. He has received numerous academic and professionalawards, and is the author and editor of a wide variety ofprofessional publications.

FRANKLIN J. PLEWA, Jr., is Professor of Accounting at Idaho StateUniversity. The recipient of honors and awards for both teachingand research, he is the author of many books and articles. He isthe coauthor with George T. Friedlob of Keys to Improving Your ROI,Financial and Business Statements, Understanding Income Statements,and Understanding Cash Flow.