FINANCE TEMPLATE
Investment Memo Template
Investment evaluation with financial analysis, scenarios, assumptions, risks, and recommendation.
Use this templateWhat's inside
Field | Details |
|---|---|
Investment | What you want to invest in |
Type | Capital Expenditure |
Amount | $XX,XXX |
Expected Return | X.Xx ROI / XX% IRR / $XX,XXX NPV |
Payback Period | X months |
Author | Name |
Status | Under Review |
Decision Deadline |
Recommendation
Lead with the answer. What do you recommend and why? One paragraph. The analysis below supports this recommendation.
Opportunity
What is the opportunity or problem? Why now? What changes if we don't invest?
Financial Analysis
Metric | Year 1 | Year 2 | Year 3 | Total |
|---|---|---|---|---|
Investment cost | ||||
Expected revenue / savings | ||||
Net return | ||||
Cumulative ROI |
Assumptions
What must be true for these numbers to hold? Flag the assumptions that carry the most risk.
Assumption | Basis | Sensitivity |
|---|---|---|
Key assumption driving the forecast | Data source or rationale | High |
Medium | ||
Low |
Scenarios
Scenario | Assumptions Change | ROI | Payback |
|---|---|---|---|
Bull case | What goes better than expected | ||
Base case | Most likely outcome | ||
Bear case | What goes worse than expected |
Risks
Risk | Probability | Financial Impact | Mitigation |
|---|---|---|---|
What could cause the investment to underperform | Medium | $X,XXX downside | How we limit the loss |
Low |
Alternatives
Alternative | Cost | Return | Why Not |
|---|---|---|---|
Alternative approach considered | Why the recommended option is better | ||
Do nothing | $0 | $0 | Cost of inaction |
Approval
Role | Name | Decision | Date |
|---|---|---|---|
Author | Recommends | ||
Finance | Pending | ||
Decision maker | Pending |
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