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Anonym A
am 12. Juni 2023
Global
Frage zu

Question on the ROI calculation

I wonder why we only include license costs rather than operating costs and salary in calculating the ROI.

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Profilbild von Cristian
am 12. Juni 2023
Ex-McKinsey | Verifiable 88% offer rate (annual report) | First-principles cases + PEI storylining

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

Profilbild von Ian
Ian
Coach
am 12. Juni 2023
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.

Anonym B
am 22. Sept. 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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