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Return on investment (ROI) is a key financial metric that assesses the profitability and efficiency of an investment relative to its cost. This measure evaluates the gain or loss generated from the investment compared to its initial cost. The versatility of ROI allows it to be expressed in both dollar amounts and percentages, providing a comprehensive view of the investment’s performance.

When presented in dollars, ROI reflects the exact monetary gain or loss, demonstrating the tangible financial impact. Conversely, presenting ROI as a percentage offers a comparative measure that can be easily understood and used to benchmark against other investments or projects. This dual capability enables stakeholders to make informed decisions based on both absolute returns and relative performance, optimizing their investment strategies.

Understanding ROI within these two contexts—dollar value and percentage—enhances the decision-making process by allowing comparisons across different types of investments or financial projects. This flexibility is crucial for laboratory management and other fields where resource allocation and investment decisions are critical.