Estimating the financial benefit that your project is anticipated to deliver is paramount in determining your investment appraisal, and ultimately, verifying your business case and project justification.
Solverboard allows you to forecast your financial benefits over your preferred investment period. In combination with your cost to bring to market, (made up of your investment cost which is your project costs including risk allowance), it enables you to evaluate investment appraisal metrics to help inform project justification and continuation decisions.
- Select the ‘Financial Benefits and Investment Appraisal’ jump link.
- Select the edit mode.
- Select the start year you anticipate the financial benefits to commence and press the related ‘save’ button.
- Add the number of years you wish to forecast the return over.
- If your project delivers a saleable product or service, then estimate the sales and any other revenue-generating line in the sales section of the table.
- On this basis, add any correlated cost of sales estimates required to generate the sales revenue in Step 5 and any other appropriate expenses as part of your organisation’s accounting approach.
- (Optional) if your project is a cost-cutting, cost avoidance or any other change that will not generate revenue but contribute to an improvement to organisational profitability then estimate them using the sales line without any corresponding cost of sales entry as to model a financial gain.
- Click on the edit button to save your changes.
- Click on the ‘Notes on financial projection’ edit icon.
Describe any calculative assumptions you have made in deriving your financial benefits. Click on the same edit icon to save your changes.
- ‘Click to upload attachments’ button to attach any supporting information.