Question

Not sure if I can ask this here, but does anyone know if this ROI calculation is correct? It says 25% ROI while it should be -75%

Answer 1

You're right

Don't take the following at face value, I don't study economics:

It is probably supposed to be

    ROI = (Revenue - Cost) / Cost
        = Profit / Cost

And they probably meant to write $10m for the revenue, so you get a profit of $10m-$8m=$2m, translating to a 25% ROI