| Gray cells contain calculations that should not be altered. |
| [Company Name] |
| Technology Budgeting Tool |
| [Date] |
| Company Data |
| Required rate of return | 10% |
| Tax rate | 30% |
| Initial Investment | YEAR | 1 | 2 | 3 |
| Hardware costs (e.g., servers, networking hardware, PC upgrades) | $1,000 |
| Purchased software costs / licenses (e.g., e-commerce, ERP, CRM software) | $0 |
| Development costs (e.g., systems design and configuration / development) | $0 |
| Training costs (e.g., develop and conduct initial training) | $0 |
| Conversion costs (e.g., initial data conversion from existing systems being replaced) | $0 |
| [Other initial investments] | $0 |
| [Other initial investments] | $0 |
| Total Initial Investments | $1,000 |
| Benefits from Technology Strategy | YEAR | 1 | 2 | 3 |
| Increased sales and revenue | | $1,000 | $1,000 | $1,000 |
| Reduced personnel costs | | $0 | $0 | $0 |
| Reduced product costs | | $0 | $0 | $0 |
| Reduced distribution costs | | $0 | $0 | $0 |
| Reduced advertising and marketing costs | | $0 | $0 | $0 |
| [Other benefits] | | $0 | $0 | $0 |
| [Other benefits] | | $0 | $0 | $0 |
| [Other benefits] | | $0 | $0 | $0 |
| Total Benefits | | $1,000 | $1,000 | $1,000 |
| Costs (Excluding Initial Capital Investments) | YEAR | 1 | 2 | 3 |
| Depreciation on capital expenditures (calculation uses three-year period) | | $333 | $333 | $333 |
| Software licensing fees | | $0 | $0 | $0 |
| Ongoing user support and training (e.g., help desk and training personnel) | | $0 | $0 | $0 |
| Ongoing systems support (e.g., IT maintenance) | | $0 | $0 | $0 |
| Hosting / Cloud computing | | $0 | $0 | $0 |
| General and administrative | | $0 | $0 | $0 |
| [Other costs] | | $0 | $0 | $0 |
| [Other costs] | | $0 | $0 | $0 |
| [Other costs] | | $0 | $0 | $0 |
| Total Costs | | $333 | $333 | $333 |
| Totals | YEAR | 1 | 2 | 3 |
| Net Benefits (Costs) | | $667 | $667 | $667 |
| Tax | | $200 | $200 | $200 |
| Value after tax | | $467 | $467 | $467 |
| Depreciation added back | | $333 | $333 | $333 |
| Cash flow | ($1,000) | $800 | $800 | $800 |
| Cumulative cash flow | ($1,000) | ($200) | $600 | $1,400 |
| Evaluation Metrics | |
| Net present value (NPV) | $989 |
| Internal rate of return (IRR) | 60.74% |
| Payback period (in years) | 1.25 |
| Three-year total ROI: (total benefits before taxes - total costs)/total costs | 200.00% |
Bricef02r
Returnoninvestmenttemplate.xlsx
