Discounted cash flow with data out to 2080

james.westbrook
james.westbrook
in Modeling

Hi Everyone,

 

This is my first post. I am a relatively new Anaplanner and I'm currently making my way through Level 2 Model Building but I am also trying to work on some real life modelling at the same time. Apologies if this is the incorrect place for this question but I need some help.

 

I have an issue with a current model I've been asked to create.

 

I work in the investment industry and I have been asked to complete a discounted cash flow on an asset where the forecast cashflows extend out to 2080. If we ignore the criticism of the accuracy of a forecast that extends out to 2080 and just accept that these numbers need to be used does anyone have any bright ideas as to how to do this?

 

The model time frame is currently 50 years (which appears to be Anaplan's max) then I looked at Time Ranges and only seem to be able to make these a max of 63 years.

 

The only idea I've had is to create a separate module with a time range starting at the end of my model range. I can then complete a DCF back to the end of the model date (i.e. the start of this time range) and then utilise this value as a closing value in the original module which is utilising the 50 year time frame of the overall model and then discount this back to today.

 

Any ideas much appreciated!

 

 

Tagged:

Answers

  • a.dilieto
    a.dilieto

    Hi @james.westbrook ,

     

    it could be an idea to create a dummy FY list with as many years as you need. Anyway, you will need to have a maintenance process to update the list at every year switch and you loose the functions that work on the native time dimension.

     

    Hope that helps.

    Regards,

    Antonio

  • DavidSmith
    DavidSmith

    @james.westbrook 

    No apologies needed, this is the right place for questions!

     

    Time ranges can run from 1980-2079, so we can manage 100 years

    If you are not concerned about visuals, you can use this module as a generic timescale and map the start year of the projects to 1980 and then calculate to 100 years and then map the calculation back out to the main module.

    Sometimes we see customers who build a "second" set of years and use then for 2080-2179, again, ignoring the century prefix.

     

    But, also, as @a.dilieto said, using a fake timescale is an option for some financial functions

     

    David

Categories