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.
The return on investment formula seems simple, but the calculation is not always as straightforward as it looks. The challenge in finding ROI for any investment or action is determining which costs and which gains belong in the calculation.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.