Lesson 3: Create attributes to retrieve the financial metrics

Tutorials : Analyzing investment using Focal Point® : Module 1: Configure the financial model : Lesson 3: Create attributes to retrieve the financial metrics

In this lesson, you create the attributes to retrieve the financial metrics. You use the alias of the time grid attribute as a prefix for the alias of each these result attributes.

Financial metrics

A good investment analysis measures the probabilities of different financial metric outcomes, their magnitude and the risks that go with it before arriving at a decision. These are some of the important financial metrics:

Metric		Description
Net Present Value	NPV	The difference between the present value of cash inflows and the present value of cash outflows, over a period of time
Return on Investment	ROI	Compares the magnitude and timing of investment gains with the magnitude and timing of investment costs
Payback period		The length of time required for cumulative incoming returns to equal the cumulative costs of an investment
Internal Rate of Return	IRR	The discount rate at which the NPV of costs (negative cash flows) equals the NPV of the benefits (positive cash flows) of the investment

Steps

1 In the list of attributes for the Mobile App module, click Add Attribute.

2 Create an attribute for the Net Present Value:

▪ In the list of attributes, select Matrix.

▪ In the Name field, enter NPV Distribution.

▪ In the Alias field, enter mobile__NPV.

▪ Click OK. The attribute NPV Distribution is added to the list of attributes.

3 Similarly, create these attributes:

Attribute type	Attribute name	Alias
Float	NPV Mean	mobile__NPVMean
Float	NPV Standard Deviation	mobile__NPVStddev
Integer	ROI	mobile__ROI
Float	IRR	mobile__IRR
Integer	Payback Period	mobile__ paybackPeriod
Matrix	ROI TO Date	mobile__ ROIToDate
Matrix	ROI TO Go	mobile__ ROIToGo
Matrix	Payback period distribution	mobile__ paybackPeriodDist

Lesson checkpoint

In this lesson, you learned how to create the financial metric attributes to retrieve the investment analysis results. For more information, see Attributes for retrieving financial model results.

Lesson 4: Create a project element