Financial calculations on demand

Geeky · ‎03-02-2019

Can anybody please explain how financials are calculated on a demand?

How to allocate certain amount to the demand

How ROI% is calculated?

How net present value is calculated etc? Please explain these calculations with example.

Sandeep V1 · ‎03-18-2019

Hi Srini,

I took even distribution for cost plans in my earlier calculations, that is why it is slightly off from the system NPV. But now that I see your data, the calculation is matching perfectly. Here is how it is done.

FY19 License cost planned cost = 4285. FY20 License cost planned cost = 5714

FY19 Resource cost plan planned cost = 5760. FY20 Resource cost plan planned cost = 6240

Total FY19 Planned cost = 10045

Total FY20 Planned cost = 11954. After applying discount rate, FY20 planned cost = 11954/1.1 = 10867

Total Planned cost = 10045 + 10867 = 20912

FY19 Benefit cost = 8823

FY20 Benefit cost = 21176. After applying discount rate, FY20 benefit cost = 21176/1.1 = 19250

Total Benefit cost = 19251 + 8823 = 28073

NPV = 28073 - 20912 = 7161

Let me know if this helps.

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Geeky · ‎03-12-2019

Hi Sir,

here is the screenshot of the benefit plan

I tried changing the duration but no luck

Sandeep V1 · ‎03-12-2019

Hi Srini,

Typically, benefit plan follows the cost plan w.r.t chronology. IRR% gives discount rate which makes NPV as zero and it is an annual rate. Delete the existing benefit plans and create a new one for FY20, you will see that IRR will be populated.

Thanks!

Geeky · ‎03-13-2019

No sir, it did not work out for me... Can I share my instance details and password with you if you don't mind?

Can you drop me a mail on smerxxxgmail.com so that I can share the instance details?

Appreciate your help on this.

sanjivsachdev · ‎03-15-2019

No discount rate

sanjivsachdev · ‎03-11-2019

What are you not clear about ?