|
|
(65 intermediate revisions by 2 users not shown) |
Line 1: |
Line 1: |
| =R3OI=
| | #REDIRECT [[Target_Reliability_Tool]] |
| ReliaSoft's Reliability Return on Investment(RRROI or R3OI)metric was
| |
| | |
| First, traditinal Return On Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. In general to calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; and the result is expressed as a percentage or a ratio.
| |
| | |
| <math>\[ROI=\frac{Gain-Cost}{Cost}\]math>
| |
| | |
| The return on investment formula:
| |
| | |
| | |
| | |
| | |
| In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.
| |