BUDGET TOOL 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 Hardware costs (e.g., servers, networking hardware, PC upgrades) ,000 Purchased software costs / licenses (e.g., e-commerce, ERP, CRM software)

Budget Toolgray Cells Contain Calculations That Should Not Be Altered

BUDGET TOOL 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 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 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 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 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%