In evaluation product opportunities, which of the following is a financial method for evalutaion?
Correct Answer: B
Return on investment (ROI) is a financial method for evaluating product opportunities. ROI measures the gain or loss generated by an investment relative to its cost, providing a quantitative assessment of the financial benefits of a project. This metric helps organizations determine the profitability and potential financial returns of different product opportunities, guiding decision-making and prioritization. Using ROI as an evaluation method ensures that resources are allocated to projects with the highest potential for financial success, aligning with the company's financial goals (Kaplan & Norton, 1996; Brealey, Myers, & Allen,
2019).