Return on Investment (ROI) is a standard measure of project profitability, this is the discounted profits over the life of the project expressed as a percentage of initial investment. The calculation is shown in detail below in which product A has expected revenues of $15M and development cost of $10M. Product B has expected revenues of $150M with development costs of $100M.
You can read more about using ROI in Economics of the Fuzzy Front End of NPD.
For additional NPD definitions, please see the NPD Glossary.
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