ERP investment scenarios
With the following calculator, You can simulate the effect of an ERP investment. Entering various numbers in the white fields, you can try different scenarios as you wish.
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Changes in revenues (thousand-USD) |
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Changes in Expenditures (thousand-USD) |
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Numerical balance (thousand-USD) |
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Conversion % |
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Converted balance (thousand-USD) |
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Net present value of the investment (thousand-USD) |
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Sample Calculation
In our example, only the ERP investment cost appear in the first year, then, after the second year the revenue increases and the costs are reducing. The conversion % is adjustable with different values each year. Besides the modest assumptions in the example, the introduction of an ERP system can increase the company's net present value with about $421,000.