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Subject: [Advice] Recommendation on Return on Investment

  • 1.  Subject: [Advice] Recommendation on Return on Investment

    Posted 07-15-2014 10:36
    Hi Jin

    To calculate ROI, you must calculate the net present value (NPV) applied the formula NPV = Sum (Fi (1 + i) ^-j), using a i (discount rate) you get a positive NPV and another the NPV is negative, then apply the formula 
    TIR = (ip + (VPN (IP) / (VPN (IP) VPN + absolute value (iq)) (iq-ip) * 100 
    ip <iq

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    Edmundo Pimentel
    Teacher
    Calle Los Laboratorios
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