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:
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: