Page 215 - BV-BC 4 days

Financial

• ROCE (Return on Capital Employed) is expressed as a percentage ration and is
calculated as Profits divided by Costs. For example, ROCE = 10% if total project
costs are $10m and profits from project are $1m

• Suggested reading to understand relationship between WACC and ROCE:
http://www.ukvalueinvestor.com/2014/11/return-on-capital-employed.html/

• The NPV of technology solutions and services indicates the current financial value in
today’s terms that they bring to the business

• Challenges for determining the financial value of a solution include:

• Potential distribution of benefits over multiple functional areas

• Long term cycles for deployment and adoption

• Difficulty to determine NPV of returns