Return on Investment of Project Page

Overview

Use this page to view the project's net present value, ROI, and payback period or to edit spending and benefit plans.

Screen Elements

Specify the timescale for entering ROI spending and benefit plans list

The time interval (month, quarter, or year) you want to use to track ROI for this project.

Note: The top of the page also displays the annual discount rate, application period, and project start date.

Date field

The month, quarter, or year in which you want to track ROI for this project. The dates listed correspond to the choice you made in the Specify the timescale for entering ROI spending and benefit plans list. You will see one of the following series of dates for viewing your spending and benefit plans depending on the timescale selected:

  • Twelve (12) months within a single year
  • Eight (8) quarters spanning two (2) years
  • Ten (10) years

Spending Plan field

The anticipated or actual project spending for the corresponding time period.

Benefit Plan field

The anticipated or actual profit or benefit portion for each time period. Typically, the benefit plan begins after the project has completed.

Total Present Value (Discounted) of Spending Plan field

The projected project spending for the corresponding time period. Numbers can be positive or negative, and should be entered as non-discounted dollars.

Total Present Value (Discounted) of Benefit Plan field

The calculated total of spending and benefit plans for all periods, reduced to current dollars by the discount rate.

Current dollars for individual spending plan and benefit plan periods are calculated as:

Plan period $ divided by (1+discount rate)n

Where n equals the current discount application period value (for example, for yearly over 8 years, values are calculated for n equals year 0, year 1, year 2, ... year 7). The project start date is used as the beginning of period 0. If the project start date or discount rate are changed, Total Spending Plan PV, Total Benefit Plan PV, NPV, ROI, and Payback Period are recalculated.

Net Present Value field

The difference between present value of the total projected cash flow and present value of the initial investment.

Calculated as Total Benefit Plan PV minus Total Spending Plan PV.

Return on Investment field

The efficiency of the investment.

Calculated as NPV divided by Total Spending Plan PV.

Payback Period field

The period of time required to recover the initial investment amount.

Edit Spending and Benefit Plans link

Revises the Spending Plan and Benefit Plan details. After revising information, click Save or to exit without changing any information, click Cancel.

Tip:

Depending on the timescale you chose in the Specify the timescale for entering ROI spending and benefit plans list at the top, the bottom of the page will display links to the previous and next year, two (2) years, or ten (10) years.

Getting Here

  1. Click "" Portfolios.
  2. On the Portfolio navigation bar, click "" ROI.
  3. On the Portfolio ROI page, click the Details link for a project.

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