volume_mute

A BA is evaluating a process where the current error rate is 15%. A proposed automation tool costs 50,000 USD and is expected to reduce the error rate to 3%. If each error costs the company 500 USD and there are 1,000 transactions per year, what is the first-year ROI?

publish date2026/03/08 06:07:6.632311 UTC

volume_mute

Correct Answer

20%

Explanation

Cost savings = (15% - 3%) * 1,000 * 500 = 60,000

ROI = (60,000 - 50,000) / 50,000 = 0.20 = 20%

Reference

go-math-science.com


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