A company invests $50,000 in a digital project and gains a profit of $75,000 in return. What is the RODI , and how should it be interpreted?

Question

A company invests  $50,000  in a digital project and gains a profit of  $75,000  in return. What is the  RODI , and how should it be interpreted?

Answer

RODI = -50% → The digital initiative is not profitable

Answer

RODI = 25% → The digital initiative generates a modest but positive return

Answer

RODI = 50% → The digital initiative generates a 50% return on the investment

Answer

RODI = 25% → The digital initiative is not profitable

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