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This question has to do with property and ROI. Is ROI a yearly computation that is...

This question has to do with property and ROI.

Is ROI a yearly computation that is based upon cashflow from the buildings or when the buildings are sold?

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Answer #1

ROI (return on investment) is based on the return from the investments made. This ROI tells about whether investment made was worth it or not.

Another thing about ROI is that it is considered as a performance measure, as it tells about the efficiency of an investment.
ROI also helps in comparing between two or more different investments and decide whether which investment should be made among them.
The higher the ROI, the good investment it is considered.

  • Formula for ROI = Net profit (return)/Initial investment (cost of investment).

Also, ROI is a yearly based computation that is based upon cashflow from the buildings and not based on cash flows when the building is sold.

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