Measuring financial benefits involves several metrics and tools:
Return on Investment (ROI): A measure of the profitability of an investment, calculated as the ratio of net profit to the initial investment cost. Net Present Value (NPV): The value of future cash flows discounted to the present, used to evaluate the profitability of long-term projects. Internal Rate of Return (IRR): The discount rate that makes the NPV of an investment zero, used to assess the attractiveness of an investment. Payback Period: The time it takes for an investment to generate enough cash flow to recover its initial cost.