System pays for itself.

ROI/NPV

Zenner Can Help You Figure Out if a Project has a Positive

ROI and NPV

 

Click here to download a ROI information form.

Email the completed ROI information form to markerting@zennerusa.com for a free ROI analysis.


What is Return on Investment - ROI?

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI measures the amount of return on an investment relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.

The return on investment formula:

In the above formula, "Gain from Investment” refers to the proceeds obtained from the sale or use of the investment of interest.

BREAKING DOWN 'Return On Investment - ROI'

Return on investment is a very popular metric because of its versatility and simplicity. Essentially, return on investment can be used as a rudimentary gauge of an investment’s profitability. ROI can be very easy to calculate and to interpret.

What is Net Present Value – NPV?

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of a projected investment or project. 

The following is the formula for calculating NPV: 

Where

Ct = net cash inflow during the period t

C= total initial investment costs

r = discount rate, and

t = number of time periods 

A positive net present value indicates that the projected earnings generated by a project or investment (in present dollars) exceeds the anticipated costs (also in present dollars). Generally, an investment with a positive NPV will be a profitable.


Why wait let Zenner help!

Simply supply information and we will run a projected ROI and NPV for your specific case.

Typical ROI of Two To Four Years
On a Well Designed System

•The estimated total savings for this utility was $326,590 per year
•NPV of the project over 15 years is estimated at $5,195,194
•Annual Maintenance and data hosting of the system is $3,740 per year
•Initial cost of the system was $319,430
•Savings calculated as follows,

           -Meter reading savings $54,129

           -Off cycle reads $12,336

           -Accounting and customer service $15,025

           -Revenue Protection $199,500