We substitute the numbers into the formula and get
Posted: Sat Feb 01, 2025 6:34 am
That is, the alternative project provides a higher return on investment (in accordance with the obtained index). Its return on investment per ruble is 1.92 rubles versus 1.77 rubles for the efficiency indicator in the first option (with the purchase of peat briquette equipment).
Let's compare it with the deposit yield. Today, according to the Central Bank of the Russian Federation, the yield rate for a term of more than 12 months is 8.633% - the contributed ruble will bring 8.6 kopecks. This is clearly lower than the yield for the second version of the project (1.92 rubles for each ruble of investment). Of course, in real life, such a comparison is not entirely correct: business is associated with much higher risks than a deposit. It is better to compare projects that are close in risk level.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned kenya email list about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
Download template
Already downloaded
153438
Where is the return on investment index applicable?
According to the CFA Institute, almost nowhere in the world is the PI index used as a criterion for assessing the effectiveness of investments. Investment projects are more often analyzed using NPV and IRR. This is due to the fact that to calculate PI, you still need to determine NPV, and thanks to IRR, the problem of comparability of profitability of different projects is solved.
But abroad, financial management uses the investment efficiency index as a guideline for capital regulation.
Where to Use the Return on Investment Index
Source: shutterstock.com
In Russia, when evaluating projects, a set of indicators and data on the profitability of investments are used to satisfy potential users of the report. The PI index is often more understandable for the information consumer, depending on its preparation, than the concepts of NPV and IRR.
Let's compare it with the deposit yield. Today, according to the Central Bank of the Russian Federation, the yield rate for a term of more than 12 months is 8.633% - the contributed ruble will bring 8.6 kopecks. This is clearly lower than the yield for the second version of the project (1.92 rubles for each ruble of investment). Of course, in real life, such a comparison is not entirely correct: business is associated with much higher risks than a deposit. It is better to compare projects that are close in risk level.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned kenya email list about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
Download template
Already downloaded
153438
Where is the return on investment index applicable?
According to the CFA Institute, almost nowhere in the world is the PI index used as a criterion for assessing the effectiveness of investments. Investment projects are more often analyzed using NPV and IRR. This is due to the fact that to calculate PI, you still need to determine NPV, and thanks to IRR, the problem of comparability of profitability of different projects is solved.
But abroad, financial management uses the investment efficiency index as a guideline for capital regulation.
Where to Use the Return on Investment Index
Source: shutterstock.com
In Russia, when evaluating projects, a set of indicators and data on the profitability of investments are used to satisfy potential users of the report. The PI index is often more understandable for the information consumer, depending on its preparation, than the concepts of NPV and IRR.