The client wants to invest $5M in a business to get a ROI of 50% over 5 years. This means the client needs an additional operating profit of $12.5M/year to make this investment worth pursuing ..this number was obtained by doing ($5M x1.5- $5M).. why are we multiplying $5M by 1.5 and subtracting 5M? Could someone explain the formula used here?
(editiert)