[Verse 1] Sarah invests ten thousand in machinery today Hoping annual profits will exceed the price she'll pay Net income minus costs divided by the stake Simple formula shows what percentage gains we make [Chorus] ROI equals net return over investment cost Multiply by hundred for the percentage that you've crossed Easy calculation but the story's incomplete Context tells you when this metric can't be beat [Verse 2] Two divisions compete for capital allocation Marketing shows thirty percent, production twenty-one But marketing's horizon spans just eighteen months ahead While production's benefits stretch ten years like golden thread [Chorus] ROI equals net return over investment cost Multiply by hundred for the percentage that you've crossed Easy calculation but the story's incomplete Context tells you when this metric can't be beat [Bridge] Time value forgotten in this snapshot view Risk assessment absent from the numbers that you knew Residual values hidden when the project finally ends Different accounting methods make the metric twist and bend [Verse 3] Asset base confusion clouds the calculation Book value understates while replacement costs inflate Managers game the system, delay investments late When bonuses depend on ratios they manipulate [Chorus] ROI equals net return over investment cost Multiply by hundred for the percentage that you've crossed Easy calculation but the story's incomplete Context tells you when this metric can't be beat [Outro] Powerful for benchmarks, tracking year to year But combine with other tools to make decisions clear
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