Projects that are dictated by compliance with laws and regulations, good manufacturing practice, product safety, employee welfare, disasters or accidents, and the like, are generally not evaluated on the basis of a financial return. The return on investment (ROI) from such a calculation should only be viewed as an order of magnitude estimate. Sensitivity analysis should always be performed to test the strength of the proposal. Many cost savings or productivity proposals can be quickly evaluated through ROI analysis. ROI analysis is particularly useful for determining if a specific project meets the company’s hurdle rate but not always sufficient for selecting from among projects that all exceed the hurdle rate. ROI measures only one dimension of a financial proposal. Since it is actually a ratio, it ignores the absolute magnitude of the opportunity. ROI analysis has a tendency to place more importance on near-term profits rather than long-term reward.