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Because of the role that the ROI plays in evaluating an investment expenditure, what kind of...

Because of the role that the ROI plays in evaluating an investment expenditure, what kind of an effect does the ROI have on investment spending?

A.) no effect
B.) a positive effect
C.) a negative effect
D.) it could have any of these effects
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Answer #1

The answer is D -) It could have any of these effects.

because, ROI - Return on investment is an important tool to evaluation the profitablity of the investment . it is the ratio between the net gains to the net cost of the investment. a high ROI means a high gains. ROI is used to evaluate to efficiency of investment or to compare different investment plans. therefore, the purpose of ROI is to measured the rates of return on money invested in order to decide to whether or not to undertake or perform those investment. therefore ROI has any effect on investment spending depending on the measured value of ROI.

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