Marginal Income - Marginal Costs = Marginal Profit, then calculate Marginal Profit / Current Profit and see if it gives a ratio greater than 0.25 or not. 0.25=25%, Marginal means any increase or decrease in revenue or costs after making the investment.
I have a question:
So let's say a business wants to undertake an investment plan. I want to find out whether this investment plan will increase the business' profit by 25% by the year 2030.
How do I calculate this? Do I only look at the business' predicted profit in 2030? Is there a formula for this?
Thanks.
