What is ROI (Return on Investment)?

Especially when considering projects with sizable financial investments, businesses often have to ask, “Is it worth it?” ROI is what answers that crucial question. ROI, or return on investment, is a mathematical formula that can judge how an investment compares to others. Watch this video to learn how ROI is used across enterprises.

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[priscillaager]

I don't think the calculation is correct. ROI in this example should be 50%, not 150%
If the investor made 5, 000 shouldn't the calculation be:
(5, 000)/(10, 000)?...