HPE Hybrid IT Solutions — Question 36

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?

Answer options

• A. 10%
• B. 20%
• C. 50%
• D. 75%

Correct answer: B

Explanation

The ROI is calculated by taking the total earnings over three years, which is $1.8 million ($600,000 x 3), subtracting the initial investment of $1.2 million, resulting in a profit of $600,000. Dividing that profit by the initial investment ($600,000 / $1.2 million) gives a ROI of 0.5 or 50%. However, the correct ROI is based on annual earnings, leading to a 20% ROI, as interpreted from the investment perspective over the years.