Return on Investment Analysis (ROIA), sometimes referred to as Capital Equipment Justification, is the process of building and analyzing a financial model for the purpose of determining the net financial contribution of obtaining a major investment like a factory building or piece of production equipment.
ROIA is the link that connect the brilliant ideas of makers–the engineers, designers and builders—to the goals of the managers who hold organization’s purse strings. When thoroughly conducted, ROIA aligns the best estimates of the revenues and expenses related to a potential purchase with the years in which they will occur.
