You can set the annual total cost of capital and the annual reinvestment rate for investments at the system level. CA Clarity PPM uses these values to calculate the MIRR for planned costs and budget for investments. If you change the total cost of capital and reinvestment rate values on the system options page, the corresponding values change accordingly on the budget properties page of the investment. The corresponding values change only if you select the option to calculate financial metrics automatically and use the system rates for total cost of capital and reinvestment. The metrics for all investments that use system options are recalculated. This happens in the background and may take some time if the system needs to process many investments.
You can override the system-level values by redefining these values at the investment level on the budget properties page.
Follow these steps:
The system options page appears.
Defines the annual finance rate on the capital borrowed to fund an investment. This value is reflected as the system rate for total cost of capital in the Financial Planning section of the investment budget properties page.
Defines the annual interest rate used to reinvest positive cash flow for an investment. This value is reflected as the system rate for reinvestment in the Financial Planning section of the investment budget properties page.
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