Return on Investment

Use this calculator to determine the return on investment over ve years based on projected Discount Rate
revenues and costs. Enter the discount rate (the interest rate used to determine the present
value of future cash ows), then enter your projected bene ts and costs in the tables below. 10%

Summary
Present Value of Return on Investment (PV ROI) 50% The sum of net present value divided by the sum of present value of costs

Net Present Value (NPV) (in Thousands) L 45 The sum of annual net present values

Internal Rate of Return (IRR) 0% The discount rate that yields a net present value of 0

Year 1 2 3 4 5

Discount Factor 0,91 0,83 0,75 0,68 0,62

Increased Revenue L 100

Decreased Costs L 50

Annual Bene ts L 150 L0 L0 L0 L0

Present Value (Bene ts) L 136 L0 L0 L0 L0

Costs
1 2 3 4 5

One-Off Costs L 85

Recurring Costs L 15

Annual Costs L 100 L0 L0 L0 L0

Present Value (Costs) L 91 L0 L0 L0 L0

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 Net Value

1 2 3 4 5
Annual Net Value L 50 L0 L0 L0 L0
Cumulative Net Value L 50 L 50 L 50 L 50 L 50
Net Present Value L 45 L0 L0 L0 L0
Annual ROI 50%