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This document contains a business case analysis for an idea to generate savings. It proposes implementing the idea with an investment of 1000 and estimates it will generate 100 in savings annually over the next 5 years. However, it has a negative net present value of -616 and internal rate of return of -19%, indicating the investment costs outweigh the projected financial benefits. The document outlines the idea details, current state, risks, implementation needs, and provides calculations to evaluate the financial feasibility and impact.

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sarantce
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58 views5 pages

Profile V 1 0 1

This document contains a business case analysis for an idea to generate savings. It proposes implementing the idea with an investment of 1000 and estimates it will generate 100 in savings annually over the next 5 years. However, it has a negative net present value of -616 and internal rate of return of -19%, indicating the investment costs outweigh the projected financial benefits. The document outlines the idea details, current state, risks, implementation needs, and provides calculations to evaluate the financial feasibility and impact.

Uploaded by

sarantce
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Idea number in idea catalogue

Idea name

Idea description

Basic information
Idea responsible Product group
Cluster Synergy to other products
Sub-cluster Feed idea into

Current state current state picture Future State Future State Picture

Insert picture Insert picture

Major risks Implementation


Investments (one-time) 1000
Capabilities/Resources needed
No. of month to implement

Immediate next steps

SFA evaluation
Suitability(1-5) Feasibility(1-5) Acceptability(1-5) SFA score

Impact (€) Calculation of impact


Total potential savings impact (EBIT) 100 Current cost 3
Investment payback (months) on Total Savings 120.0 Future cost 1
Net Present Value (NPV) -616 Annual total volume 50
Internal Rate of Return (IRR) -19% Total potential savings (EBIT) 100
Net Present Value (NPV) Calculations

Weighted Average C 9.48% Total Investments


Savings Impact Year
Benefits listing for next 5 years Savings Impact Year
Savings Impact Yea 100 Savings Impact Year
Savings Impact Yea 100 Savings Impact Year
Savings Impact Yea 100 Savings Impact Year
Savings Impact Yea 100
Savings Impact Yea 100
Investments needed for next 5 years
Investments in curr 1,000
Investments Year 1
Investments Year 2 Please note that all the investments need to be captured here
Investments Year 3
Investments Year 4
Investments Year 5

Total Investments 1000 The sum of the investments will get captured automatically in the Business Case Tool

Net Present Value -616

IRR -19%

Please note IRR can be used to rank several prospective projects a firm is
considering. Assuming all other factors are equal among the various
projects, the project with the highest IRR would probably be considered the
best and undertaken first.
Total Investments -1000
Savings Impact Year 1 100
Savings Impact Year 2 100
Savings Impact Year 3 100
Savings Impact Year 4 100
Savings Impact Year 5 100

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