I wonder why we only include license costs rather than operating costs and salary in calculating the ROI.
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16
3
125% ROI after Year 1
10
ROI calculation
18

Anonymous A
on Jun 12, 2023
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Question on the ROI calculation
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Top answer

Cristian
on Jun 12, 2023
Coach
#1 Rated McKinsey Coach | Top MBB Coach | Verifiable success rates
Hi there,
Yes, you could also include those.
Don't take the suggested answers to these sort of cases as absolute truth. Instead, think of them as guidance.
Seek instead to figure out how the suggested solution could improve your own rather than how it could replace it.
Best,
Cristian
0 comments

Ian
on Jun 12, 2023
Coach
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
Hi there,
I agree with you. Based on my understanding of this case, you should indeed include operating costs and salary.

Anonymous B
on Sep 22, 2023
Hi there,
I believe ROI looks at return i.e. profit on the initial cost only. Operational costs are not required for this formula.
I hope this helps.
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