return on investment roi 1

Instructions

1. Review the ROI Calculator Example

2. Go to the Costs and Sources tab and enter the costs associated with your technology solution.

3. Go to the ROI Calculations tab and enter the categories of savings and amount to be saved each year – for your solution. Edit the entries and delete the rows where excess entries are shown. Use ‘insert row’ if you need to add rows. This will retain the formulas correctly.

4. On the ROI Calculations page enter the categories of costs (initial investment costs and ongoing costs) and the amounts for each of the first 5 years of use of your solution using the data you entered on the Costs and Sources tab. Edit the entries and delete the rows where excess entries are shown. Use ‘insert row’ if you need to add rows. This will retain the formulas correctly.

5. Review the totals that are calculated by the spreadsheet formulas and make sure they are correct.

6. Review the two rows in Section 3 below the costs and examine how the cash flow and cumulative cash flow are calculated.

7. In section 4, enter any assumptions that affected the costs recorded; some examples are shown

8. Review the 4 charts at the top of the page to see how the categories of savings and costs break out.

9. The top right chart shows the Return on Investment (ROI) for your project and the Payback Year. These will be included in your written narrative that explains your technology solution.

10. Your written narrative will also include the total investment (one-time) costs and the annual ongoing cost amounts.

11. Your written nattative will also discuss the categories and amounts of savings expected from implementing your solution.