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 date: 2026/03/08 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