Valuing Intangibles and Phillips ROI Methodology
Phillips (2005) uses the following formula to calculate ROI: ROI (expressed as a percentage) = (Net Program Benefits / Net Program Costs) x 100 (Phillips, 2005, p. 2). This seems fairly simple and straightforward until one examines the way that program benefits and costs are calculated. This method goes beyond calculating only the items that are already expressed in dollars; it requires a conversion of intangibles to monetary values.