Managing products and portfolios : Financial planning using time grid attribute : Calculating financial information by using business rules : Calculating the NPV for a time grid row
  
Calculating the NPV for a time grid row
Net Present Value (NPV) is a financial metric that refers to the difference between the present value of cash inflows and the present value of cash outflows, over a period of time. You can use the TimeGridNPV business rule to calculate the net present value of a time grid row. You might use this information to represent the net costs and benefits over time in a project. The result is displayed in the business rule container attribute. If the values in the row change, the NPV is automatically updated.
Before you begin
To use the TimeGridNPV business rule, you need the following information:
the names of the time grid attribute, sheet, and row to calculate the NPV for
the rate, either as a reference to an attribute where the rate is stored, or as a number, "0.05" or "5%"
the start date and end date, either as references to attributes containing start and end dates, or on the format "YYYY-MM-DD". If you do not specify a start or stop date, the entire row is used.
Procedure
1 Create an integer attribute.
2 Enter your business rule in the following format:
=TimeGridNPV('Time Grid Attribute Name',"Time Grid Attribute Name",
"Sheet Name", "Row Name", 'Rate Attribute Name',
'Start Date Attribute Name', 'End Date Attribute Name')
You can also refer to date attributes for the start and end dates. Enter the business rule in the format:
=TimeGridNPV('Time Grid Attribute Name',"Time Grid Attribute Name",
"Sheet Name", "Row Name", "Rate",
"Start Date", "End Date")
3 Click Save.
Results
The NPV of the time grid row is calculated and displayed in the integer attribute.
Note NPV is calculated as a decimal. To display the NPV as a decimal, enter the business rule in a float attribute instead.
Example
From the Financial time grid attribute, you can calculate the NPV of the Net Cash Flow row in the Budget sheet. In this example, the calculation starts in cell A13. The calculation is based on the internal rate that is specified in the Internal Rate attribute in the Rate element in the Project module:
=TimeGridNPV('Financials', "Financials", "Budget",
"Net Cash Flow", 'Project!Rate!Internal Rate')
=TimeGridNPV('Financials', "Financials", "Budget",
"Net Cash Flow", "0.1")
=TimeGridNPV('Financials', "Financials", "Budget",
"Net Cash Flow", "0.1", "2012-01-02", "2012-12-31")
=TimeGridNPV('Financials', "Financials", "Budget",
"Net Cash Flow", 'Project!Rate!Internal Rate', 'Start date', 'End date')
Compare the NPVs of different projects in a portfolio.
See also
MatrixNPV business rule
Calculating financial information by using business rules