|
40 years ago, Sid Gilbreath, my favorite professor at Georgia Tech, drilled us on the time value of money in our course in Engineering Economy. As a result, I have always felt myself to be pretty proficient at calculating the return-on-investment (ROI) for materials handling projects. But, there are definitely some traps that I have fallen into myself.
Consider the simple cash flow diagram that shows negative and positive cash flows over the life of the project. The diagram illustrates a capital investment in year “0”, followed by an annual savings for 10 years.
To immediately read the rest of this TPG whitepaper, please fill in the form at the right.
ABOUT THE AUTHOR
James M. Apple, Jr. is a Director in The Progress Group. Prior to co-founding The Progress Group in 1991, he was a Partner with Coopers & Lybrand's SysteCon division. During 1992-1995 he served as a Senior Systems Advisor with Vanderlande Industries, a major conveyor and systems provider in Europe.
|
