Proposal Pack / All Templates / Financial - Return on Investment

How do you write a Return on Investment document?

This template is similar to the Cost Benefit Analysis template but this template focuses more on the ROI calculations. Detailed below is the Return on Investment analysis for the project. The costs for the development operations and ongoing maintenance of the project vs. the benefits are summarized for 5 year period. Description Year 1 Year 2 Year 3 Year 4 Year 5 Total Total Costs Benefits Net Ratio ROI Financial ROI Benefits. Describe the positive aspects of the ROI calculations from financial perspective. This is the most traditional definition of ROI. Examples include reductions in cost higher profits etc.

Non Financial ROI Benefits. Describe the positive aspects of the ROI calculations from non financial perspective. If the financial benefits are not substantial then the non financial aspects are more important. Examples include customer satisfaction shorter time to market improved data etc. If you have detailed cost benefit analysis data tables graphs graphics output from Cost Benefit or ROI Analysis software etc. include them here. Include the total project cost for time period and the total income expected to be generated and or saved during the period. This can be converted into the expected ROI Return on of the project. You should be able to show that the ROI is high enough to justify the project. If monetary ROI is low then the benefits should be tangible enough to show valid reason for developing the project. The Total Costs amount is the total cost of production operations and ongoing maintenance. The Benefits are the financial benefits to the customer such as income generated cost savings etc. The Net is the Benefits minus the Costs. The Ratio is the net divided by the Costs. The ROI is the Ratio times For example Total Costs for year are $. Benefits for year are $15 000. The Net is $5000. The Ratio is and the ROI is 50%.