The concepts of return on investment (ROI) and total cost of ownership (TCO) have been used for decades in enterprise evaluations of IT investments, including enterprise resource planning (ERP) systems. However, with the emergence of important new technological advances, executives are now expanding these traditional formulas to account for new opportunities. Learn more about their new methods for measuring ERP value.
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financing charges are met. NPV is often not a good measure for technology projects, because it''s artificially low. Internal Rate of Return: This is a capital budgeting metric used by firms to decide whether they should make investments. It''s an indicator of an investment''s efficiency, as opposed to its NPV, which indicates value or magnitude. Accounting for the Intangibles Freescale Semiconductor Inc., a $5.7 billion maker of embedded electronics solutions based in Austin, Texas, uses a standard