1 2 Discount Rate 3 5 6 A Data For Plan A: In-House Development Costs: B 10% Year 0 Year 1 7 Consultant time to develop system BPurchase necessary software platform 9 Hardware 0 Consultant training time 16800 2500 12500 0 4500 0 1560 3120 Total Costs: $37,860.00 1.000 0.909 1 Office staff maintenance, backup and updating 2 3 Present Value Factor (10%) 4 5 6 Eliminate overtime Benefits: 7 Eliminate additional position 8 Eliminate daily errors 9 Present Value 3510 7020 15600 31200 1560 3120 Total Benefits: $20,670.00 Present Value Factor (10%) 1.000 0.909 Present Value 1 2 3 NPV (Net Present Value) PV benefits - PV costs Cash Flow 4 ROI = (Total Benefits - Total Costs) / Total Costs