Calculation question on determining CRM ROI
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Calculation question on determining CRM ROI
ROI, CRM ROI, Call Center ROI/TCO
What is the difference between risk-adjusted ROI and IRR? If I use cumulative discounted cash flow (i.e. NPV) divided by the present value of cost (i.e. cash outflows, including tax increase) to calculate ROI, why does this consistently yield a higher percentage than IRR? Please advise. Thank you.
ASKED: Jul 28 2008  3:07 PM GMT
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Flame
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A place to start looking for an explination might be here:

http://www.valuescopeinc.com/ViewDetail.aspx?PCID=48

or here:
http://www.allbusiness.com/management/432981-1.html
Last Answered: Jul 28 2008  8:06 PM GMT by Flame   14495 pts.
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Laurenhoyt   115 pts.  |   Sep 29 2008  3:31PM GMT

Hi there,

On <a href="http://SearchCRM.com" title="http://SearchCRM. " target="_blank">SearchCRM.com</a>, ROI expert Tom Pisello has discussed this question and similar topics at length. Browse his Ask the Expert section or jump directly to these Q/As:

Metrics: ROI, IRR, NPV, payback, discounted payback

What’s the difference between NPV and IRR?

How can I calculate internal rate of return (IRR)?

Hope this helps!
Lauren
Editor, <a href="http://SearchCRM.com" title="http://SearchCRM. " target="_blank">SearchCRM.com</a>

 
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