Organizational and financial modeling tool

Description
Organizational and financial modeling tool

This planning and budgeting tool is designed to create a phased organizational plan of your business project, financial.

PURPOSE

This planning and budgeting tool is designed to create a phased organizational plan of your business project, financial modeling of future cash flows, and appraisal of investment prospects. This is a tool of initial stage of planning.

CAPABILITIES

The tool allows to:

• Create a phased organizational plan of project implementation in the form of:
o Milestone Tables
o Gant Chart
• Estimate the costs at each stage and develop a sales forecast
• Design a funding needs forecast and to plan investments
• Design a forecast of project investment prospects

PLANNING PROCEDURE

1. Create a phased organizational plan for your project implementation
2. Create a plan of costs associated with the milestones of the project
3. Design a sales forecast
4. Plan financing
5. Simulate the results, appraise the investment attractiveness.

INVESTMENT PERFORMANCE

• NPV – net present value;
• IRR – internal rate of return;
• PI – profitability Index;
• PP – payback period;
• DPP – discounted payback period;

NPV (net present value) is measured in monetary terms. Within the selected planning period NPV should have a positive value.

IRR (internal rate of return) is measured as a percentage. When calculating, it is compared to the accepted discount rate. If the IRR value is higher, then we deem a project as investment- attractive. In practice, IRR is used to compare alternative investments. As a rule, an investor has a lot of projects. His or her task is to choose the project with the highest IRR.

PI (synonyms, profitability index or productivity index) is a ratio. If the value of ratio is greater than “1”, the project is deemed investment-attractive; if the value is “1”, the profit will be equal to the costs of the project. To implement such project, it is necessary to finalize and revise the main indicators; if the value is less than "1", the project is deemed unprofitable and is not further considered.
PP (payback period) determines the period of time needed to have the invested funds recouped to the investor. This factor shows the level of attractiveness of a particular investment project.

DPP (discounted payback period ) determines the time required to return the investment in the project due to the net cash flow, taking into account the discount rate. Cash flow discounting allows to evaluate time money of value. In other words, when calculating the payback period, we consider the changes in purchasing capacity of money.