Time Frame | Consistency | Precision |
ROI does not consider the length of the investment. Without keeping the time frame the same across all calculations, your comparisons will be all off. | Once you start using ROI as a comparison tool, you need to use it across all your investments. This also applied to costs you’re including: have you considered inflation or taxes? | Rounding incorrectly may have caused you to get a C on your math exam, but doing so with ROI can cost you quite a chunk of change. To be as accurate as possible, you need to double-check your calculations. |
If Yes… | If No… |
You’re already behind. You need to move forward with this project to stay in the game. | This is your chance to get the winning edge. If no one else has it, you’ll have the advantage. |
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