How does ROI affect project selectionSolutionROI stands for

How does ROI affect project selection?

Solution

ROI stands for return on investment which means calculation of return that could be profit or loss on the money invested in the project. It is calculated as percentage of return earned on project.

ROI affect on project selection

If the ROI is positive that means the project is generating profits and thus the project must be selected. Higher the ROI better is the project

If the ROI is negative the project shouldn\'t be selected because the project would be giving losses.