NPV without an outflow
Good morning
I am building a model consisting of future variable monthly cash outflows without any cash inflows.
I need to calculate the NPV of that in order to convert that into a liability using the variable cash outflows as down payments..
The NPV formula require cash in and cash out.
What are your suggestions?
Best Answers

It is possible to calculate the NPV as per your table.
NPV can work with with data whose source is either dimensioned by time period or a transactions list.
I will outline both approaches;
With Time
Cashflows are laid out using time dimension.
Without Time
Time dimension has been removed and a transaction list added.
This is the result;
The difference in values is due to the time calculation taking the full model calander and discounting over the full 3 years. The no time calculation only calculates for the values and dates presented and will stop discounting after the final transaction.
1 
In Our April Group Event we discussed how NPV can be calculated without Anaplan timescale. Here is the link.
https://community.anaplan.com/t5/ModelersForumIndia/RecordingofGroupEvent13042021/mp/105085
Hope this helps
Misbah
1
Answers

Hi @Roelofg
I would suggest that you come up with a mock up in excel, and share the screen shot here.
Thanks,
LipChean
0 
5% Jan21 Feb21 Mar21 Apr21 May21 Jun21 Jul21 Aug21 Sep21 Oct21 Nov21 Dec21 Jan22 Feb22 Monthly 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 Variable 500 500 End of Contract 2000 1000 1000 1000 1000 1000 1500 1000 1000 1000 1000 1000 1500 1000 3000 NPV $16,422.30 0 
See below
0 
Hi @Roelofg
Have you given the NPV formula a try?
https://help.anaplan.com/c504a4f5551342e391cfb34d873d18f3NPV
Thanks,
LipChean
0 
Hi LipChean_Soh
I used it but is concerned about the following statement:
NPV(d, c, [m, t]) where
 c: Number: Cash flow. Must have at least one negative and one positive value
The cashflow does not have at least one negative. Does this have an impact on the answer?
Roelof
0 
Hi @Roelofg
Looking back at your example, how did you arrive at 16,422.3
When i tried to do a mockup in Excel, i arrived at 11,560.3
Please note that i moved 2000 to Feb21 to be added with the 1000 from Feb21.
Thanks,
LipChean
0