P
PFM
Guest
Folks,
Let's say a promoter wants to build a new facility, costing E 400k. Non-repayable grant aid of 150k is secured, leaving promoter to raise / borrow 250k. The facility makes a year one loss of 30k, year two profit of 10k and year three profit of 50k (net, after all expenses, but before taxes).
How would I calculate RoI ? Many thanks.
Do I say "In Yr 3, RoI is 50/250 = 20%".
Or "By end of Yr 3, RoI is (50+10-30)/250 = 14%".
Or, indeed, do I use the full cost figure of 400k ?
Let's say a promoter wants to build a new facility, costing E 400k. Non-repayable grant aid of 150k is secured, leaving promoter to raise / borrow 250k. The facility makes a year one loss of 30k, year two profit of 10k and year three profit of 50k (net, after all expenses, but before taxes).
How would I calculate RoI ? Many thanks.
Do I say "In Yr 3, RoI is 50/250 = 20%".
Or "By end of Yr 3, RoI is (50+10-30)/250 = 14%".
Or, indeed, do I use the full cost figure of 400k ?