Positive return on investment means you’ve made a good investment. The challenging part is just how to arrive at true return on investment, the one that takes into account all aspects of the purchase, not just the initial purchase price. It’s here where careful analysis of all aspects of the investment can make a huge difference. For example, consider the comparison of a relatively expensive high performance machine tool over a cheaper alternative.
The better machine is desirable, but it’s too expensive. But is it really? Without an in depth return on investment analysis you can’t really tell. Suddenly, even a quick return on investment can add up to a clearer picture of which way to go. Obviously, only an return on investment with all your businesses’ variables and the complete costs and residual values of the machines considered can lead to your true return on investment. To that end, we have included two free returns on investment calculators.