What would be considered a good or bad ROI and why?

This is a funky question as we all have different views as to what a good ROI would be.  I think that it all depends on the goal of the company or individual.

For example an individual can spend 20k in a car over a period of 6 years; however, that car allows the individual the opportunity to get to work for 48k, 49k, 50k, 51k, and 52k.  Overtime the car does depreciate, there is interest, the car does need maintenance, and there are other things that we pay for, but the car will have an ROI regardless particularly after pay-off.

For a company the ROI may not always be financial and it could be that “yay!” there’s a 1% ROI to a project that was supposed to cost more than the return.  There are also times when the expected ROI is 5% and anything less could potentially ruin a company. I believe it all depends on the situation of the company or the individual as to what constitutes as a good or bad ROI.

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