You expect that a project will bring in $12,000 USD in revenue per year. You estimate it will cost $5,000 up front. You also estimate costs of $50 per month for the first 12 months, which equals $600 per year. Using the formula (G-C) ÷ C = ROI, how would you calculate the project’s return on investment (ROI) after the first 12 months?

(12,000 – 5,600) ÷ 5,600 = 114% ✓

(5,600 – 5,000) ÷ 12,000 = 5%

(12,000 – 5,600) ÷ 5,000 = 128%

(12,000 – 5,000) ÷ 5,000 = 140%

Correct

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