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Return on Investment - Assignment Example

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In the absence of accurate future projections, we can use the amount of settlements from the prior year to roughly estimate the amount of savings that would be achieved in the future. However, if the past pattern of savings differs in nature from savings that could be made by…
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It is highly essential that trainers are able to estimate the ROI, cost benefit analysis and break even analysis as they need all these to assess the financial viability of training projects. A high ROI project may definitely be worth it but computing the cost benefit analysis side by side would also enable a trainer to estimate how much benefit can be obtained per unit of cost and decide if the project is even worth entering into (Powell, 2008). As for breakeven analysis, trainers need to use this measure to figure out when exactly will they be able to cover the costs they have spent in training and then start making profits as they might need this information for project budgeting and planning needs.

Further on if a choice is to be made between mutually exclusive projects, than these measures would aid trainers in deciding what’s the best project to go ahead with. Thirdly and finally, the computation of these measures will aid training endeavors when they alter/re-plan their training projects to achieve the maximum benefit out of it or to cut down on their costs (Young and Aitken,

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