Answer: is not worth its cost
Step-by-step explanation:
After an analysis, you are told that it will cost $100,000 to modify an information system so that it captures several new facts about your customers. Knowing those additional facts will help you to increase sales by an estimated $500 per year. You conclude that the information provided by this data: is not worth its cost .Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio. The Current Value of Investment” refers to the proceeds obtained from the sale of the investment of interest. Because ROI is measured as a percentage, it can be easily compared with returns from other investments, allowing one to measure a variety of types of investments against one another. Since the Rate I’d return is low . This option isn’t is not worth its cost
For example, suppose Joe invested $1,000 in Slice Pizza Corp. in 2017 and sold his stock shares for a total of $1,200 one year later. To calculate his return on his investment, he would divide his profits ($1,200 - $1,000 = $200) by the investment cost ($1,000), for a ROI of $200/$1,000, or 20 percent.