Indicators

The Indicators screen presents financial indicators which are important to analyze the validity and profitability of the business plan. These indicators are calculated for the entire planning period and include:

Total Revenues

The total revenues during the plan period.

Net Present Value (NPV)

The discounted amount of the net operating cash flow during the plan period. This value is based on the assumption that amount of income or expenditure received or paid in the future is not equal to the same amount as of today due to the cost of capital. Future amounts are discounted to the beginning of the plan period by the discount rate which was entered in the General Data screen.

Internal Rate of Return (IRR)

The discount rate that sums up the Net Present Value to zero is the IRR. This rate represents the return rate of the business in terms of percentage and is used to compare the business against other investment alternatives.

Payback Period

The period, in years, in which the investment in the business is returned. It is calculated based on the period where the accumulated NPV becomes positive.

Maximum Exposure

The maximal amount that can be lost in the business if it is closed at the worst point, i.e. when the investment in plant, equipment and working capital is done and the revenues have not started or are too low to cover the investment. The formula of the Maximum Exposure is:

Retained Earnings - (Fixed Assets - Acc. Depreciation + Inventory)

The Indicators screen presents, in a table and in a graph, the change of the accumulated Net Present Value during the plan period.

Toolbar Buttons

The toolbar includes the following buttons:

OK - Close screen (and save all changes if applicable)

Print Table - Create a report for the current table, showing it on the print preview screen

Display Options - Arrange the screen in different arrangements: display table with graph or just one of them.

Export to MS Excel file - Exports the displayed table to MS Excel