Unformatted text preview: what to measure—and how. Like most companies, Intel
already had expertise in evaluating new manufacturing facilities and other capital projects. But
technology projects also have intangible benefits that aren’t easily quantified. One of Bryant’s
challenges was formalizing financial accountability for e-business applications.
The company’s track record has been quite good so far. E-business projects have reduced
costs in many areas. For example, an electronic accounts payable (A/P) system was devised to
take over many routine transactions so that employees could focus on analysis. Bryant estimates that the present value of this project’s cash inflows, less the initial investment, is $8 million. And the company no longer misses opportunities to take advantage of discounts for prompt
Like Intel, every firm must evaluate the costs and returns of projects for expansion, asset
replacement or renewal, research and development, advertising, and other areas that require
long-term commitments of...
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