Friday, July 30, 2010

Tutorial 3 (2)

Our ROI (Return of Investment)

Estimated total cost: $25, 419, 364
Estimated total claim interim payment from client: $37,119, 960

We assume that there has a 5% defect of the gain, so final gain is 95% of total interim payment from client.

ROI = ($35,263,962 - $25,419,364)/$25,419,364
= 38.7%

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