To determine if an investment is worth pursuing, you can analyze its potential return vs. its cost. For example, if you're considering an investment that costs $1,000 and it's expected to generate a return of $200 per year, the annual return rate would be 20% ($200 / $1,000). You can compare this return rate to other investments or your required return rate to see if it's a good fit.

Return on Investment (ROI) is a measure of the profitability of an investment. It is calculated by taking the gain from the investment, subtracting the cost of the investment, and then dividing by the cost of the investment. It helps investors understand how much profit they are making relative to the amount they have invested.