Find the romi for the first year, Marketing Management

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Find the romi for the first year

Problem

A business purchases a new form of consumer relation management technology for $380,000. Because of this purchase, the company earns an extra $50,000 annually.

• Find the ROMI for the first year.
• How many years will it take to get a positive ROMI (i.e. ROMI greater than zero)?

If the extra earnings are expected to increase by 25% annually, how many years will it take to get a positive ROMI?

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Marketing Management: Find the romi for the first year

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Marketing Management: Find the romi for the first year

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