Present value template in Planning Business Modeler
The rule that you can create by using the Present Value template calculates the present value of an investment. That is, the rule calculates the total amount that a series of future equal payments is worth now.
Calculations that involve loans or mortgage payments frequently use present value. For example, present value might be used to calculate the value of an automobile loan to a lender.
A rule that you create with the Present Value template assumes that equal payments are made for a specified number of periods. The interest rate is the interest rate per period.
The following list shows the tasks that are prerequisite for a rule that you create with this template:
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You must create a dimension member in the Account dimension that the rule can use to hold computed values. For example, you might name this member PresentValue. For more information, see Create dimension members.
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A present value rule uses a cash flow account for input and depends on the sign of account values to calculate correct results. To guarantee correct results, values that indicate outflow or payment values should be negative numbers, and values that indicate inflow or income should be positive numbers.
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You must determine the discount rate that you want to use for a present value calculation. The discount rate is the rate over one period in the time series. For example, if the time series is annual, the discount rate should be an annual rate. If the time series is monthly, use a monthly rate.
This rule has NativeMDXScript implementation and uses a Microsoft Office Excel function. NativeMDXScript implementations run automatically at query time. For more information, see Native code implementation.
Rules with NativeMDXScript implementation must be saved as inactive in the model and then be enabled by your PerformancePoint Planning Global Administrator. For more information, see Security requirements for SQL and MDX rules.
To convert the PresentValue template into a business rule, you must substitute actual dimension values for the placeholders in the templates. For information about how to substitute values, see Filling a placeholder in a rule template.
The following table describes the placeholder substitutions that you must make to create a business rule from this template.
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Placeholder |
Comment |
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<<[Time].[Hierarchy].[ TargetTimeMember]>> |
Time period for which the present value result will be stored. |
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<<[Time].[Hierarchy].[ Starting Period]>> |
Start of time period in which a payment amount is stored. |
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<<[Time].[Hierarchy].[Ending Period]>> |
End of the time period for the time series of cash flows. |
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<<[Account].[Hierarchy].[ PV Target Account]>> |
User-defined member of the Account dimension that will store the calculated present value. |
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<<[Account].[Hierarchy].[CASH FLOW Account]>> |
Member of the Account dimension that provides input payments to the PV calculation. |
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<<DiscountRate>> |
Periodic interest rate to use in the calculation. |
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<<Numperiods>> |
Number of periods over which the payment amounts will be made. This value must be a valid string. |