Return on investment (ROI)= earnings before interest and tax (EBIT)/ total investment (TI)* 100%. (earnings before interest and tax = total annual profit+interest expense. )

Investment profit rate refers to the ratio of the annual interest and pre-tax profit of the project to the total investment. The calculated investment profit rate should be compared with the industry standard investment profit rate or the industry average investment profit rate. If it is greater than (or equal to) the standard investment profit rate or the average investment profit rate, the project is considered acceptable, otherwise it is not feasible.