Sir, I don't understand how return is calculated when debt is taken to fun a project
1 Answer(s)
Binny
When you invest money in a project - you may invest as equity and debt.
When you calculate the ROI, then you have to subtract the amount of initial debt investment from the returns before dividing it by the equity.
Aug 05 2013 11:41 AM
When you calculate the ROI, then you have to subtract the amount of initial debt investment from the returns before dividing it by the equity.