How does one calculate the ROI of a Software project? Also, any difference between Long term and Short term projects?

Asked by Last Modified  

Follow 1
Answer

Please enter your answer

Mathematics Teacher

i can say only maths and state
Comments

Freelancer & Educator, Language , Vedic Maths, Humanities

yes, i can help you if some students come across
Comments

Professional Coaching- Commerce Subjects & English

ROI is return on investment, or the capital employed. In a very practical sense, the ROI is nothing but the Rate of Normal return that can be attributed to the industry, multiplied by the capital invested. If the % ROI is not know, or given, you may take the normal returns prevailing in the same industry....
read more
ROI is return on investment, or the capital employed. In a very practical sense, the ROI is nothing but the Rate of Normal return that can be attributed to the industry, multiplied by the capital invested. If the % ROI is not know, or given, you may take the normal returns prevailing in the same industry. Mathematically, it can be denoted by the formula ROI = ROI % X Capital Employed Simply speaking, it is what you get back from a project, had you invested some of your money into that. Long Term Projects Vs Short term Projects- These are differences between projects based on the time period involved. Projects having very less time say upto 12 months can be considered to be short term projects. Such initiatives may be taken to solve a specific issue, and involve lesser funds. These may be in the nature of internal projects to solve internal problems.The formalities and regulations associated with these my also be lesser. these projects may even take off for such limited periods such as 1 week, or few hours. Long term projects, on the other hand involve huge amounts of resources, and larger gestation periods, 12 months are more. The formalities and legal costs involved, will of course be much higher. Rather than addressing a specific issue, it definitely seeks to "earn" a return. Thus, it may be open for external parties as well, both for raising funds and operations. read less
Comments

Experienced Tutor

Rate of Interest should be calculated according to the risk involved with the company managing the software. So it depends on the project. If you are looking to get a loan on Software project better try to get a venture capital. Yes, there is huge difference between Long Term and Short Term Project,...
read more
Rate of Interest should be calculated according to the risk involved with the company managing the software. So it depends on the project. If you are looking to get a loan on Software project better try to get a venture capital. Yes, there is huge difference between Long Term and Short Term Project, the whole difference is of Economic Profits, While in Short term there can be losses / profit whereas in long term it benefits the growth of the company as the project works on economies of scale once launched. read less
Comments

Good Commerce Lecturer

Businesses are in business to make money. But calculating the true value of any project (Lean Six Sigma or otherwise) with respect to its impact on margin has always been challenging, mainly due to the ambiguity of turning notions into dollar values. For instance, it is clear that training employees...
read more
Businesses are in business to make money. But calculating the true value of any project (Lean Six Sigma or otherwise) with respect to its impact on margin has always been challenging, mainly due to the ambiguity of turning notions into dollar values. For instance, it is clear that training employees will improve expertise and productivity, but how does that translate to bottom-line savings or revenue growth? Spending thousands of dollars on automated systems and software is likely to improve work efficiency, but what’s the dollar-value improvement of that efficiency? Return on investment (ROI) is a key calculation in answering these questions, as well as showing the project value and its impact on the margin. read less
Comments

Student

its a long process
Comments

long process
Comments

Rate of Interest should be calculated according to the risk involved with the company managing the software. So it depends on the project. If you are looking to get a loan on Software project better try to get a venture capital. Yes, there is huge difference between Long Term and Short Term Project,...
read more
Rate of Interest should be calculated according to the risk involved with the company managing the software. So it depends on the project. If you are looking to get a loan on Software project better try to get a venture capital. Yes, there is huge difference between Long Term and Short Term Project, the whole difference is of Economic Profits, While in Short term there can be losses / profit whereas in long term it benefits the growth of the company as the project works on economies of scale once launched read less
Comments

View 6 more Answers

Related Questions

what are the challenges that democracy face in our country and else where?
People of democratic nations have many rights in respect of our nation I.e. freedom of speech,equality,religious faith and beliefs,educational and cultural freedom,right of education and information as...
Nihal
1 1
5
muje english sikni h
Get good english books on modern prose and sit with a dictionary. Note diwn meanings and you will learn new words and try to apply them when you talk. Good luck
Balram
Hi , I want to remove all my reqeuests postings and want to post new request as the system is showing i have exceeded the limits. please advice
i am not understand your question what are you asking exactlly which type of posting request you are talking
Nagesh
0 0
7
can i speak fluent English with in 1 month?
Its heartening to learn your intention of gaining fluency in language. Fluency in spoken English depends on several factors like your present knowledge, your confidence, etc. However, one month is not...
Yesu
What is dry ice?
Solidified carbon dioxide (below negative 31 degrees C). Above that temperature, it sublimes (passes directly from solid to gas phase without entering liquid phase) into the gaseous carbon dioxide that we all know.
Harshad
0 0
8

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

What is Stress and sources of stress
What are Stress and sources of stress Stress affect or physical and mental health. If we have lesser resources and expectations are more, we feel stressed. Expectations may be physical, psychological,...

Components of Digital Marketing
Content marketing Search Engine Optimization (SEO) Paid Search (PPC) Email marketing Social Media Marketing Digital Display Marketing (Ad Ops) Web Analytics and Reporting Mobile Marketing 30...
G

Geek M

0 0
0

Do You Know How Is Size Of Structure Defined?
Size of the structure is defined based on multiplies of bigger data type member in the structure. Example: If a structure contains integer, char, short data type, then size of the Structure will be multiples...

SQL SERVER: How To Pass Parameters To The Stored Procedure?
SQL SERVER: How To Pass Parameters To The Stored Procedure? After so many years of existence of the stored procedures, I still see developers struggling to execute the stored procedure. The most common...

Use of 'THE'
Use of ‘THE’ Sometimes people tend to use ‘THE’ unnecessarily in sentences without any consideration where it is not required, and the meaning of the sentence completely changes...

Recommended Articles

During the last days in school, every student waits for their college life. It is, of course, exciting to get admission in your dream college with the course you wanted to pursue. Its your effort and struggle that makes you part of the college that you aimed for. Yet, once the first month passes all students forget their...

Read full article >

Whatever you learn in college is no doubt very important and forms the base for your future professional career. However, lack of hands-on experience, business oriented skills and interpersonal skills, among fresh graduates are making them unfit for employment in competitive business environment. Today organizations operate...

Read full article >

Whether you are doing graduation or post graduation, no college student can escape from the misery of college dissertation. College dissertation is a detailed research project on a topic of your choice, approved by professors. At the beginning of the dissertation you have to set a hypothetical aim and at the end, you have...

Read full article >

Most of the students decide what stream they are going to choose at the school level. Science, commerce and arts are the main fields, and students need to choose any one between these three. Although there are many such professional courses available, most students like to select one of these three streams. In college,...

Read full article >

Looking for BA Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you