A company has a process improvement initiative that is projected to increase revenue by $150,000...

Return on investment (ROI) is a measure of the profitability of an investment, calculated as the ratio of the net benefit to the total cost. The net benefit is the difference between the revenue and the cost. The total cost is the sum of the initial and ongoing costs. In this case, the ROI over the first 3 years can be computed as follows:

RevenueInitial costOngoing costTotal costNet benefitROI​=150,000×3=450,000=200,000=30,000×2=60,000=200,000+60,000=260,000=450,000−260,000=190,000=260,000190,000​×100%=73.08%​

Therefore, the projected ROI over the first 3 years is 73.08%, which is closest to option A. 44%. References: CBAP Handbook, CBAP Study Guide, Why should you be a CBAP in 2023