ROI Calculator

By Frank Uhelsky

Format: Evaluation Form / Evaluation Assessment

If you are going to recommend that your firm spend gobs of their hard earned cash on a new system or process, you need to understand the Return on Investment (ROI) for the new system. Invariably, the first question that will be thrown at you in your proposal presentation will be: "How much is this going to cost and what is the payback?" Having a basic knowledge of financial terms will help, but nothing greases the skids more effectively than cold, hard cost data. Using the tool is easy if you follow these simple steps:

  • Determine the life cycle of the proposed method
  • Perform the cost comparison of the proposed methods versus the status quo
  • Project the revenues resulting from implementation
  • Determine the discount rate
  • Review the cost savings
  • Submit your proposal

People who downloaded this item also downloaded . . .

Log in or sign up to download this deliverable
Log In
Sign Up


Comments (3)

Login/join to subscribe

"It is an important and popular fact that things are not always what they seem. For instance, on the planet Earth, man had always assumed that he was more intelligent than dolphins because he had achieved so much -- the wheel, New York, wars and so on -- whilst all the dolphins had ever done was muck about in the water having a good time. But conversely, the dolphins had always believed that they were far more intelligent than man -- for precisely the same reasons."

- Douglas Adams

Test your PM knowledge