There is no norm. The internal rate of return should exceed the cost of capital. A low risk, on going enterprise might be satisfied with an IRR = 7- 10%, while a more risky venture might require 15- 25% IRR.
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The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.
The rate of return is a percentage that shows how much an investment has gained or lost over a specific period, while the return on investment is a ratio that compares the profit of an investment to its cost.
Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.
To calculate the rate of return on your investment, subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the rate of return as a percentage.
To calculate the rate of return on an investment, you subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the percentage rate of return.