Here is the synopsis of our sample research paper on ROI for the Molecular Identification Process Project. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 3 page paper is based on a case study supplied by the student. A firm has invested in a project, the paper calculates the return on investment and discusses whether this is an appropriate measure and the potential pressures that the individual making the assessment may be facing if the firm is looking at making an initial public offering. The bibliography cites 2 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEriomip.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
this is the first measure Elaine may use. This is a very basic measure of profit, it is calculated by taking the profit created, usually the operating profit and dividing
it by the investment amount. GSM have invested in a molecular identification process (MIP), with an initial investment $140 million there has been a large commitment made to the project.
The initial expectations were for the creation of an operating profit of $25 million. This would give an return on investment (ROI) of 17.86%, as seen in figure 1 Figure
1 ROI for $25 million return Investment amount (millions) (a) 140 Operating profit (millions) (b) 25 Return on investment (b/a x100) 17.86% This is a very respectable return. However with
the news that there may be fewer applications than expected the potential returns may be less, and the latest projects are for a operating profit of only $17.5 million, this
leads to ROI of only 12.5%, a much lower figure than was initially expected. The calculation is shown in figure 2. Figure 2 ROI for $17.5 million return Investment amount
(millions) 140 Operating profit (millions) 17.5 Return on investment 12.50% This may be a setback, but there are several considerations that should be looked at. The use of the return
on investment is a very simple and this may not always give a fully contextual, but the potential that there is a lower return needs to be considered. If the
company may go public a different measure that may be useful is that of economic value added, EVA, this is a calculation that is used to help determine the
way that an investment may add value for the shareholders, by placing the profit is a boarder context. The calculation for an economic value added calculation is the NOPAT, this
...