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Financial Justification
The Financial Justification Worksheet captures the financial
benefits of the project and calculates standard metrics such as net present value, internal rate of return,
return on investment, break even time etc. The worksheet can be
configured for different types of projects as shown in the examples
below. In addition, this worksheet can be connected to, or
replaced by a proprietary financial model if needed.
This page
shows examples of Financial Justifications for the following types of
projects: product/process
development, cost
reduction and a general capital
investment project.
Product/Process
Development Example
When configured for new product
or process development, data entry tables are configured to capture
forecast volume, selling price and product cost. |
Capital Project (or any
project that is not product focused)
For these kind of
projects the data entry tables are simplified to two general tables to
capture profit contribution and incremental costs incurred after the
project has been completed and the asset is put into service.
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