Clarity

We are trying to calculate NPV and IRR in Clarity. We know its an option on the "budget" page on projects in Clarity. However we cannot use the budget page because we need to include depreciation & tax details when calculating NPV and IRR & most importantly need the extra features the cost/benefit plans provide.

Is there is a way to include depreciation & tax information using transaction classes to impact the NPV & IRR calculations?

We also know that its possibly to include expense type on the transaction entry as depreciation but it does not seem to have any logic tied to it and there are tax details in the rate matrix but they dont seem to apply to apply to NPV calculations. Hoping there is more here in Clarity that can help us with these calculations.

Thanks!

Hi

"Is there is a way to include depreciation & tax information using transaction classes to impact the NPV & IRR calculations?"

Yes - you can include the depreciation & tax information

I don't think that would impact the NPV adn IRR calculations.

I would suggest that you create a separate subpage where you define these 4 attributes, and create the calculated attributes to capture the mentioned.

Planned NPV = Planned Benefit - Planned Cost
Planned ROI = Planned NPV / Planned Cost

IRR - [Formula]

These can then be pulled onto a business report. We did so a while back.

Regards
NJ

You can also track the following -

Payback Period
Cash Flow Basis
Total Net Benefit
Threshold - Total Cost + Total Incremental- Ongoing Cost from Cost Plan Start Year to (Cost Plan Start Year + 2)
Present Value of Total Net Benefit

Will check further, as it was a while ago...

Regards
NJ