REO and RoI – What’s the difference?

I know – boring old economics! But please read on, as so many of you get the two mixed up, including dare I say it – several economists! REO (Return on Extra Outlay) is a much more useful term than RoI (Return on Investment). One sees RoI being used constantly – usually in the wrong way – when REO would be far more appropriate. Why? Because REO is a very useful term to compare the use of relatively small sums of working capital with one another – such as feed additives, veter