Project Return of Investment

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					PROJECT RETURN ON INVESTMENT / PAYBACK ANALYSIS TEMPLATE

Date:

High Level Assumptions




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Investment overview
Project name:
Project sponsor:
Date of request:
General description of benefits:




Investment Costs                                                        Year 0         Year 1        Year 2        Year 3      Year 4        Year 5
Software Purchase
  Buy Software                                                             100,000

Implementation Services
  Implement Software                                                       100,000

Maintenance Costs
  Maintain Software                                                         20,000        20,000          20,000     20,000      20,000        20,000

Other Costs
  Other                                                                     10,000
Total costs                                                                230,000        20,000          20,000     20,000      20,000        20,000

Expected Benefits
                                                                                             YEAR
                       BENEFIT DRIVERS
                                                                           0              1               2          3           4             5
Benefit 1                                                                                 50,000          50,000     50,000      50,000        50,000
Benefit 2                                                                                 50,000          50,000     50,000      50,000        50,000




Total annual benefits                                                                  $100,000      $100,000      $100,000    $100,000      $100,000
Implementation filter                                                                      100%          100%          100%        100%          100%
Total benefits realized                                                                $100,000      $100,000      $100,000    $100,000      $100,000

Benefits - Costs                                                        Year 0         Year 1        Year 2        Year 3      Year 4        Year 5
Annual benefit flow                                                     ($230,000)      $80,000       $80,000       $80,000     $80,000       $80,000
Cumulative benefit flow                                                  (230,000)     (150,000)      (70,000)       10,000      90,000       170,000

Discounted benefit flow                                                 Year 0         Year 1        Year 2        Year 3      Year 4        Year 5
Discounted costs                                                         $230,000       $18,605       $17,307       $16,099     $14,976       $13,931
Discounted benefits                                                             0        93,023        86,533        80,496      74,880        69,656
Total discounted benefit flow                                            (230,000)       74,419        69,227        64,397      59,904        55,725
Total cumulative discounted benefit flow                                 (230,000)     (155,581)      (86,355)      (21,958)     37,946        93,671

ROI measures
Cost of capital                                                         7.50%
Net present value                                                      $93,671
Return on investment                                                                    37%              68%       92%         113%          130%
Payback in year x                                                         No             No               No        No          Yes           Yes


                                                              079a5559-067e-4a00-9d3f-4faf8e1077f0.xls                                  7/18/2011 12:18 PM

				
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