Clarity PPM

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Calculation in Clarity for IRR & NPV

  • 1.  Calculation in Clarity for IRR & NPV

    Posted 03-24-2011 03:59 PM
    We are trying to calculate NPV and IRR in Clarity. We know its an option on the "budget" page on projects in Clarity. However we cannot use the budget page because we need to include depreciation & tax details when calculating NPV and IRR & most importantly need the extra features the cost/benefit plans provide.

    Is there is a way to include depreciation & tax information using transaction classes to impact the NPV & IRR calculations?

    We also know that its possibly to include expense type on the transaction entry as depreciation but it does not seem to have any logic tied to it and there are tax details in the rate matrix but they dont seem to apply to apply to NPV calculations. Hoping there is more here in Clarity that can help us with these calculations.

    Thanks!


  • 2.  RE: Calculation in Clarity for IRR & NPV

    Posted 03-25-2011 01:18 AM
    Hi

    "Is there is a way to include depreciation & tax information using transaction classes to impact the NPV & IRR calculations?"

    Yes - you can include the depreciation & tax information

    I don't think that would impact the NPV adn IRR calculations.

    I would suggest that you create a separate subpage where you define these 4 attributes, and create the calculated attributes to capture the mentioned.

    Planned NPV = Planned Benefit - Planned Cost
    Planned ROI = Planned NPV / Planned Cost

    IRR - [Formula]

    These can then be pulled onto a business report. We did so a while back.

    Regards
    NJ


  • 3.  RE: Calculation in Clarity for IRR & NPV

    Posted 03-25-2011 01:22 AM
    You can also track the following -

    Payback Period
    Cash Flow Basis
    Total Net Benefit
    Threshold - Total Cost + Total Incremental- Ongoing Cost from Cost Plan Start Year to (Cost Plan Start Year + 2)
    Present Value of Total Net Benefit

    Will check further, as it was a while ago...

    Regards
    NJ