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‎03-02-2019 08:14 PM
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.
Solved! Go to Solution.
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‎03-18-2019 11:33 PM
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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‎08-30-2021 11:51 AM
how do you account for operational run cost after solution is live in this situation? do you include it in benefit plan with negative amount? do you include it in cost plan but not roll up in total project cost? usecase: demand/project one time cost is 100K, after solution is live yearly run cost is 25K year over year. This is not TCO yet at the point of planning or execution, but needs to be accounted for in the business case/demand