650 wk1 db1 res | Business & Finance homework help
When assessing the viability of investing into this proposed project, it is important to look at both utility and traditional ROI approaches. The utility approach takes into consideration how customers may perceive Walt Disney’s products and services after the investments have been made; if they are satisfied with what is being offered then customer loyalty will remain strong, resulting in further sales and positive returns on investment over time. Traditional ROI looks more closely at the financial side of things; examining whether an initial outlay would result in future revenues that exceed them – providing an overall return on that initial investment.
By evaluating both utility and traditional ROI approaches when assessing their proposed project for Walt Disney, investors will gain a better understanding as to whether or not it is worth putting their money up front for potential long-term rewards down the line. This allows them to make well informed decisions as opposed to decisions based off instinct alone – helping ensure that any risks taken are weighed carefully against potential gains before they commit any resources towards this new venture.