Most measures are accompanied by investments and savings. You can also input those in FutureproofedCities, so that you get an idea of how much money the measure will generate and when its costs will be covered.

## Investments

The initial investment reflects the best estimate of the initial investment per Key Performance Indicator (KPI), which is laid down per measure. An example is a measure consisting of an investment of €100 per household or €200 per tree.

To define those, go to the “Financial” tab and click “+ New investment per piece”. In 3 steps, you can then choose who makes the investment and over how many years it is spread:

- Select
**who**makes the investment (the city, individuals, companies, industry, agriculture, etc.). These can be several parties (solar water heaters for families allocated an allowance by the municipality, for example). - Input
**how much**the investment amounts to per piece (*i.e.*per unit). - State for
**how long**the investment will run. For many measures, that is equal to the life span of the measure (renovation measures are spread over years, for example), but for “one-off” projects (construction of a heat grid, for example) a large investment of 1 year may be required.

**Please note:*** *All investments in the standard list of measures include VAT.

## Annual savings

The annual savings reflect the best estimate of the annual savings per Key Performance Indicator (KPI) laid down for this measure. An example is a measure consisting of **savings of €200 per household or €20 per tree**.

You can add savings in the same way as investments:

- Select
**who**will benefit from the savings (the city, individuals, companies, industry, agriculture, etc.). - Input
**how much**the annual savings amount to per piece (e.g*.*per unit).

Negative annual savings are the same as annual costs. The annual savings also include the overheads of matters such as management or maintenance (so Annual savings per piece = Annual savings as such – Overheads)

## Other indicators

- The
**cumulative cash flow**represents future cash flows. There is a return on investment the moment such cash flows become positive. - The
**Repayment period**shows how long it takes before the investment is recouped. - The
**Internal rate of return**(IRR) represents the average return on the investment after 15 years. If the current interest rate is higher than the IRR, the investment will be lucrative. The standard setting for the current interest rate is 1.5% (discount rate minus the inflation of the energy price). You can adjust these values by clicking ⚙️ > “Data input” (see here).

What can you do after this?