Portfolio ROI PageOverview Use this page to display cost/benefit information based on live data for the open project group. After recording spending and benefit plan data, the discount rate, and the rate application period on the Project Details ROI page, navigate to this page to view Net Present Value (NPV), ROI, and payback period calculations. If you attempt to view a chart on the Portfolio ROI page but no discount rate or spending/benefit plan data has been recorded for the project, a message appears to notify you. At the project level, you can view a time-distributed chart showing project-level spending, cash inflow, and NPV. Screen Elements Return Navigates back to the previous page. Name field The name of the project, code, EPS node, or portfolio. Annual Discount Rate field The interest rate associated with the cost of an investment from your commercial bank or another funding source. Valid values are 0 to 100. This rate is used to calculate Total Spending Plan Present Value and Total Benefit Plan Present Value. For example, an annual growth rate of an investment such as 4.75% can be used as an annual discount rate. This rate is used when a future value is assumed and you are trying to find the required net present value. Total Benefit Plan field The sum of the monthly benefit plan.When you select an EPS node, project Code, or portfolio in the hierarchy, this is the sum of Total Benefit for all projects in the group. Calculated as Plan period $ divided by (1 plus annual discount rate) multiplied by n Where n equals the current discount application period value (e.g., for yearly over 8 years, values are calculated for n equals year 0, year 1, year 2, ... year 7). The project start date is used as the beginning of period 0. If the project start date or annual discount rate change, Total Spending Plan PV, Total Benefit Plan PV, NPV, ROI, and Payback Period are recalculated. Payback Period field The length of time required to elapse before net profits have recovered the initial and periodic costs of an investment. Total Spending Plan field The sum of the monthly spending plan.When you select an EPS node, project Code, or portfolio in the hierarchy, this is the sum of Total Spending for all projects in the group. Calculated as Plan period $ divided by (1 plus annual discount rate) multiplied by n where n equals the current discount application period value (e.g., for yearly over 8 years, values are calculated for n equals year 0, year 1, year 2, ... year 7). The project start date is used as the beginning of period 0. If the project start date or annual discount rate change, Total Spending Plan PV, Total Benefit Plan PV, NPV, ROI, and Payback Period are recalculated. Net Present Value field The difference between the present value (PV) of the future cash flows from an investment and its investment cost. Present value of the expected cash flows is computed by discounting them at the required rate of return or discount rate. Positive net present value (NPV) is an indicator of projects that should be pursued. Calculated as Total Benefit Plan (PV) minus Total Spending Plan (PV). Return on Investment field A calculation of the expected return or benefit over and above the investment costs of a project or portfolio, expressed as a percentage. Calculated as the Net Present Value divided by the Total Spending Plan Present Value. For example, a project is expected to cost 1.0 million dollars with a total benefit of 1.2 million dollars. It's NPV is $200,000. The return on investment is 20%. Details link Opens the Return on Investment of Project page where you can view NPV, ROI, and Payback Period for a project or edit its spending and benefit plans. View Chart link Displays the cumulative NPV curve and per period spending and benefit bars across the timescale, based on the time increment you select. To view a value legend for a specific timescale increment, click on a bar or the curve. To print the chart, right-click it and choose Print. To show or hide the chart legend, right-click over the chart, then mark or clear Show Histogram Legend. Tips
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