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

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