summing up an abbreviation is a shortening of a word or a phrase an acronym is an abbreviation that forms a word an initialism is an abbreviation that uses the first letter of each word in the phrase thus some but not all initialisms are acronyms
ROI, or return on investment, is a common business term used to identify past and potential financial returns. Managers and executives look to the ROI of a project or endeavor because this indicates how successful a venture will be.
Return on investment is frequently derived as the âreturnâ (incremental gain) from an action divided by the cost of that action. That is the simple version of this cash flow metric, used for evaluating investments, business case results, and other actions.imple ROI for each case, in each period, appears in the bottom row of each table. Applying the cash flow formula above to these data, the ROI metric is found for the the end of year 3, for case Beta is given as. Return on investment calculation at the end of Year 3.