Your customer is on the verge of spending $1,2M on a new HPE Synergy 120000 deployment for the ERP system. Over the next three years they expect to see
$600,000 per year in earnings.
What would the ROI be for the given purchase?
Your customer is on the verge of spending $1,2M on a new HPE Synergy 120000 deployment for the ERP system. Over the next three years they expect to see
$600,000 per year in earnings.
What would the ROI be for the given purchase?
To calculate the Return on Investment (ROI), you need to use the formula: ROI = (Net Profit / Cost of Investment) * 100. In this case, the net profit is the total earnings over three years, which is $600,000 per year multiplied by 3, totaling $1,800,000. The cost of investment is $1,200,000. Therefore, the ROI is (($1,800,000 - $1,200,000) / $1,200,000) * 100 = (600,000 / 1,200,000) * 100 = 50%.
It should be C, 50% of $1.2M is $600K (Per year)