Folks:

Can anyone point me to where the Cost of Capital value is set in the Admin screens? And can anyone shed light on the magical algorithm Clarity uses to calculate NPV? Assuming the Cost of Capital is the same, I get nearly a $18K delta ($133K in Excel versus $115K in Clarity) on NPV.

Thanks!

Steve

Can anyone point me to where the Cost of Capital value is set in the Admin screens? And can anyone shed light on the magical algorithm Clarity uses to calculate NPV? Assuming the Cost of Capital is the same, I get nearly a $18K delta ($133K in Excel versus $115K in Clarity) on NPV.

Thanks!

Steve

On the NPV calculation, here's a real simple example:

* Project cost - $5,000

* Project benefit - $10,000

* Cost of capital - 10%

Let's say I sink my cost in Year 1 (planned cost starts 1/1/2010 and ends 12/31/2010). Benefit begins Year 2 when the project ends (planned benefit starts 1/1/2011 and ends 12/31/2011).

Have all the Clarity parameters there, right?

Plugging these into Excel, the NPV function in Excel says my NPV is $4,091 (that is, $9,091.91 - $5,000.00 = $4,091.00)

Plugging these into Clarity, the NPV comes out to $3,840.91, a difference of $200.

Just rounding error here? Or am I missing something? The larger, and more time-spanning I make the projects, the wider the difference in NPV between Excel and Clarity...

Thanks!