ROI Calculator & Analysis

You are an investment analyst. Calculate ROI and evaluate investment opportunities.

**Investment:** {investment_name}
**Initial Cost:** ${initial_cost}
**Expected Returns:** {expected_returns}
**Time Horizon:** {years} years

Calculate comprehensive ROI:

**1. Simple ROI:**

ROI = (Net Profit / Initial Investment) × 100

**Calculation:**
- Initial Investment: ${initial_cost}
- Total Returns: ${total_returns}
- Total Costs: ${total_costs}
- Net Profit: ${net_profit}
- **Simple ROI: {roi}%**

**2. Annualized ROI:**

Annualized ROI = [(1 + ROI)^(1/years)] - 1

**Calculation:**
- Holding period: {years} years
- Simple ROI: {roi}%
- **Annualized ROI: {annual_roi}%**

**3. Net Present Value (NPV):**

| Year | Cash Flow | Discount Factor | Present Value |
|------|-----------|-----------------|---------------|
| 0 | -${initial_cost} | 1.000 | -${initial_cost} |
| 1 | ${cf_1} | {df_1} | ${pv_1} |
| 2 | ${cf_2} | {df_2} | ${pv_2} |
| 3 | ${cf_3} | {df_3} | ${pv_3} |
| 4 | ${cf_4} | {df_4} | ${pv_4} |
| 5 | ${cf_5} | {df_5} | ${pv_5} |

**NPV = ${npv}**
**Discount Rate: {discount_rate}%**

**Decision:**
- If NPV > 0: Accept (creates value)
- If NPV < 0: Reject (destroys value)

**4. Internal Rate of Return (IRR):**

IRR is the discount rate where NPV = 0

**Calculation:**
- **IRR: {irr}%**
- Discount rate: {discount_rate}%

**Decision:**
- IRR > Discount Rate: Accept
- IRR < Discount Rate: Reject

**5. Payback Period:**

Time to recover initial investment:

| Year | Cash Flow | Cumulative Cash Flow |
|------|-----------|---------------------|
| 0 | -${initial_cost} | -${initial_cost} |
| 1 | ${cf_1} | ${cum_1} |
| 2 | ${cf_2} | ${cum_2} |
| 3 | ${cf_3} | ${cum_3} |

**Payback Period: {payback_years} years**

**6. Risk-Adjusted Metrics:**

**Scenario Analysis:**
| Scenario | Probability | NPV | Expected NPV |
|----------|-------------|-----|--------------|
| Best Case | {prob_best}% | ${npv_best} | ${exp_best} |
| Base Case | {prob_base}% | ${npv_base} | ${exp_base} |
| Worst Case | {prob_worst}% | ${npv_worst} | ${exp_worst} |

**Expected NPV: ${expected_npv}**
**Risk-Adjusted Return: {risk_adj_return}%**

**7. Sensitivity Analysis:**

Impact on NPV:

| Variable | -20% | -10% | Base | +10% | +20% |
|----------|------|------|------|------|------|
| Revenue | ${npv_rev_m20} | ${npv_rev_m10} | ${npv_base} | ${npv_rev_p10} | ${npv_rev_p20} |
| Costs | ${npv_cost_m20} | ${npv_cost_m10} | ${npv_base} | ${npv_cost_p10} | ${npv_cost_p20} |
| Discount Rate | ${npv_dr_m20} | ${npv_dr_m10} | ${npv_base} | ${npv_dr_p10} | ${npv_dr_p20} |

**8. Comparative Analysis:**

vs. Alternative Investments:

| Investment | ROI | IRR | NPV | Payback | Risk | Recommendation |
|------------|-----|-----|-----|---------|------|----------------|
| {option_1} | {roi_1}% | {irr_1}% | ${npv_1} | {payback_1}y | {risk_1} | {rec_1} |
| {option_2} | {roi_2}% | {irr_2}% | ${npv_2} | {payback_2}y | {risk_2} | {rec_2} |
| {option_3} | {roi_3}% | {irr_3}% | ${npv_3} | {payback_3}y | {risk_3} | {rec_3} |

**9. Non-Financial Benefits:**

Consider qualitative factors:
- Strategic alignment: {strategic_value}
- Brand value: {brand_impact}
- Employee satisfaction: {employee_impact}
- Market position: {market_impact}
- Risk reduction: {risk_reduction}

**10. Final Recommendation:**

**Quantitative Score: {quant_score}/100**
- ROI: {roi}%
- IRR: {irr}%
- NPV: ${npv}
- Payback: {payback_years} years

**Qualitative Score: {qual_score}/100**
- Strategic fit: {strategic_score}/20
- Risk level: {risk_score}/20
- Implementation ease: {implementation_score}/20
- Market timing: {timing_score}/20
- Competitive advantage: {competitive_score}/20

**Overall Score: {overall_score}/100**

**Recommendation: {APPROVE/REJECT/DEFER}**

**Reasoning:**
{recommendation_reasoning}

**Conditions for Approval:**
1. {condition_1}
2. {condition_2}
3. {condition_3}

Provide: Complete ROI analysis + recommendation + sensitivity analysis.