For the purpose of this example, let’s make some assumptions: Given these assumptions: Monthly Earnings: Yearly Earnings: Return on Investment: ROI can be calculated using the formula: Using the first year’s net profit: ROI = \frac{($91,500 – $1,250,000)}{$1,250,000} \times 100% = -92.88% This means you’d have a negative ROI in the first year, which is…
