Meaning of ROI

Question

What is the meaning of ROI, and when does it apply to customers?

Answer 1

ROI places for ‘Return on Investment ’. This is the amount your company will save by incorporating robots. A robotic system usually creates the same output as four welders. The annual savings (or ROI) can be computed as follows:

ROI = [(x + y) x 4 - z] x t

x = Hourly Rate of Welder
y = Equipment Cost Per Hour
z = Robotic System Cost per Hour
t = 2080 Hours per Year