Investment Committee · Technology Portfolio
Memorandum
money has a time value. so does a decision.- To
- Technology Investment Committee
- Re
- SPC-1042 · AFE Approval Automation
- From
- M. B. Thompson · Enterprise Architecture
- Date
- July 2026
Committee case for the well-pad AFE approval workflow committed in the special-project pipeline: governed routing on the delegation-of-authority matrix, ERP-integrated commitments, and a real audit trail. Benefit streams reflect committee diligence on the pipeline's $1.45M screening estimate.
Case under review
Scenario
The committee’s view
Proceed.
Positive net present value with discounted payback inside the analysis horizon.
- Net present value
- $884,624
- Internal rate of return
- 50.4%
- Discounted payback
- 2.2 yrs
everything below is live. move a slider; the verdict above recalculates.
Cost & rate assumptions
Benefit & cost-saving streams
Editable line items: set the annual value, the year benefits begin, the ramp period, and the one-time flag.
Supporting measures
MIRR
Reinvested at the discount rate
32.4%
Profitability index
PV benefits ÷ PV costs
1.82
Return on investment
Undiscounted, lifetime
115.5%
Discounted payback
Interpolated
2.2 yrs
PV of benefits
$1,957,427
PV of costs
$1,072,802
Summary of the case
The SPC-1042 · AFE Approval Automation base case supports proceeding with the investment. Over a 5-year horizon it produces a net present value of $884,624 at a 10% discount rate, an internal rate of return of 50.4%, and a profitability index of 1.82 (every $1 of cost returns $1.82 in present-value benefit). On a discounted basis it pays back in 2.2 years, assuming 75% of modeled benefits are realized. Committee case for the well-pad AFE approval workflow committed in the special-project pipeline: governed routing on the delegation-of-authority matrix, ERP-integrated commitments, and a real audit trail. Benefit streams reflect committee diligence on the pipeline's $1.45M screening estimate.