SLInvest
Version: 1.3, Oct 6 2005
Size: 604Kb, Price: $39
DownloadSLInvest is used to evaluate the financial profitability and efficiency of investment projects.
A lot of financial operations imply several payments in the process of carrying out a project instead of a single payment at certain time. For example, when buying a bond, the investor receives income in the form of yearly coupon payments, but he also gets some income when he sells this bond at its market price at the moment of selling. In order to determine how profitable this investment is, the investor has to evaluate its profitability in comparison to other possible investment projects.
SLInvest allows you to calculate main financial indicators of investment projects (NPV, NFV, IRR), which makes it possible to choose the most optimal and profitable investment.
Main indicators
- Net Present Value (NPV) - the total sum of money discounted at the beginning of the project taking into account the specified discount rate
- Net Future Value (NFV) - the total sum of money obtained at the end of the project, while the money obtained from the project increase at the specified profitability equal to the discount rate
- Internal Rate of Return (IRR) - the discount rate that results in a net present value of zero for series of future cash flows
The specified financial indicators are calculated both separately for each project and for the company's entire investment activity (as the total of all projects).
Navigation and main items
The working area of the program can be conventionally divided into three parts:
- Data table
- Parameters group
- Results group - the financial results of the company's entire investment activity
The data table should be filled out with investment sums by periods for each project. The "Total" column shows the total sums of money invested/obtained by periods. The sum for each project and the corresponding indicators are calculated in the "Total", "NPV", "NFV" and "IRR" rows.
You can specify the number of investment periods (the maximum number of periods is 50), you can analyze several investment projects simultaneously (the maximum number of projects is 10) and at the same time you can study the total financial indicators for all projects of the company.
You can change the number of investment periods and projects with the help of the "Add" and "Delete" buttons in the "Parameters" group or with the help of the toolbar buttons. The "Parameters" group also shows you the current number of periods and investment projects.
You can use the "Parameters" group to specify the discount rate for calculating NPV and NFV. The percentage rate is specified for one period (for example, if there are 12 periods in a project, each equal to one month and the percentage rate is 7%, the specified rate means 7% per month, not 7% per year). The discount rate is specified in percent and can take values from 0 to 100. You can also specify the current discount rate equal to the IRR of the project by clicking the "Get from IRR" button.
The "Results" group shows the indicators of total activity on all projects of the company.
Note that the program has no "Calculate" command because all calculation are done once you change the discount rate or an investment sum.
NPV, NFV, IRR
NPV and NFV represent the alternative cost of the project. NPV is the discounted cost of the project at the beginning of the project, while NFV is its cost at the end of the period (the cost is estimated with the specified discount rate taken into account).
Internal Rate of Return (IRR) is the discount rate when the amount of the discounted income equals the amount of the discounted investment. The calculated IRR is compared to the return rate from the money being invested required by the investor. If it is equal or more than the rate of return required by the investor, the investment is economically justified, if it is less than that, the investment in the project or program in question is not justified.
NPV, NFV, IRR displayed in the "Results" group are calculated each time you change investment sums in project or the discount rate. This data is based on the total sum of investments in all projects.
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