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Introduction Title Editing a Spending and Benefit Plan in Primavera P6 Web Access Collaborative Project Management.

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Presentation on theme: "Introduction Title Editing a Spending and Benefit Plan in Primavera P6 Web Access Collaborative Project Management."— Presentation transcript:

1 Introduction Title Editing a Spending and Benefit Plan in Primavera P6 Web Access Collaborative Project Management

2 Introduction Analyzing financial performance of a portfolio can help a company understand the net realizable or present value of projects, return on investments, and payback periods. Since companies have limited resources, analyzing financial performance for proposed projects can help companies select which projects will provide the best return. In this tutorial, you will learn how to create Spending and Benefit plans that can help you analyze several projects at a time.

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4 Net Present Value Return on Investment Payback Period Calgary$300,447 (3 rd )19.9% (1 st )387.0 days (2 nd ) Toronto$380,328 (1 st )18.8% (2 nd )322.5 days (1 st ) Vancouver$356,593 (2 nd )14.4% (3 rd )332.5 days (1 st ) Each project’s ROI is greater than the required rate of return (ie, discount rate) so all projects are viable options. Results

5 When you are capital budgeting for investments in the future, you want to make projects worthwhile for your company. In this case, Toronto has the best financially performing project based on the projected data. Why Choose Toronto? Toronto provides the greatest NPV of the mutually exclusive projects. Toronto provides a high return on investment. Although it is not the highest return available, it still provides the company with an equitable return on the money invested into the project. The Toronto payback period is shorter than the Calgary period. Future Decisions

6 Selecting projects can be stressful and confusing, but Primavera P6 can help you quickly compare projects using tools in the Portfolio Management module. The ROI can help you analyze projects quantitatively, but qualitative analysis of the external environment is always recommended. Please review the course materials on capital budgeting to understand the concepts, advantages and disadvantages and calculation methods for the valuation methods computed in Primavera P6. Final Thoughts

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