Final answer:
The estimated Return on Investment (ROI) is 20%, which is calculated by dividing the net profit of $20,000 by the investment cost of $100,000 and then multiplying by 100.
Step-by-step explanation:
The estimated return on investment (ROI) can be calculated by subtracting the total discounted costs from the total discounted benefits and dividing the result by the total discounted costs. In this case, the ROI can be calculated as follows:
ROI = (Total Discounted Benefits - Total Discounted Costs) / Total Discounted Costs
ROI = ($120,000 - $100,000) / $100,000
ROI = $20,000 / $100,000 = 0.2
Therefore, the estimated ROI for the project is 0.2, or 20%.
The estimated Return on Investment (ROI) for a project with total discounted benefits of $120,000 and total discounted costs of $100,000 can be calculated using the following formula: ROI = (Net Profit / Investment Cost) × 100. To find the net profit, subtract the total discounted costs from the total discounted benefits: Net Profit = $120,000 - $100,000 = $20,000. Then, calculate the ROI: ROI = ($20,000 / $100,000) × 100 = 20%. Therefore, the estimated ROI for this project is 20%.