Computer-Implemented Method For Evaluating an Investment

Abstract

A computer-implemented method and tool for evaluating an investment includes functionality that generates and stores data representing values/dates of a plurality of inflows and outflows over the investment period. Such data is used to derive first values that represent expected benefits over corresponding intervals of the investment period. A first net present value result is generated by discounting some or all of the first values, and then stored for output as part of the investment evaluation. The first values account for at least one of: i) interest payments and credits on calculated daily bank account balances (CDBAs) derived from the data; ii) tax payments due on CDBAs derived from the data; iii) VAT payments derived from portions of the data corresponding to forecasted sales of the investment, iv) income tax payments derived from said data, and v) allocation of forecasted net income into a plurality of predetermined categories.

1 - 33 . (canceled) 
     
     
         34 . A computer-implemented method carried out by a computer processing system for user evaluation of an investment over a predefined investment period comprising:
 storing data on the computer processing system, the data representing values and corresponding dates of a plurality of forecasted inflows and a plurality of forecasted outflows over the investment period;   processing the data on the computer processing system to calculate a plurality of first values based on the data, said plurality of first values representing financial benefits that will be derived from the investment over corresponding intervals of the investment period, wherein the first values are derived from calculation of annual net income for the investment over the investment period;   generating a first net present value result on the computer processing system by discounting said plurality of first values; and   storing said first net present value result on the computer processing system for output to a user as part of evaluation of the investment.   
     
     
         35 . A computer-implemented method according to  claim 34 , wherein:
 the first values are derived from allocation of the annual net income into a plurality of predetermined categories, wherein at least one of said plurality of predetermined categories contribute to said first values, and wherein at least another of said plurality of predetermined categories do not contribute to said first values over at least parts of the investment period;   
     
     
         36 . A computer-implemented method according to  claim 35 , wherein:
 said plurality of predetermined categories include a distributed dividend category that contributes to said first values.   
     
     
         37 . A computer-implemented method according to  claim 35 , wherein:
 said plurality of predetermined categories include a retained earnings category that does not contribute to said first values.   
     
     
         38 . A computer-implemented method according to  claim 35 , wherein:
 said plurality of predetermined categories include a reserved funds category that does not contribute to said first values.   
     
     
         39 . A computer-implemented method according to  claim 34 , wherein:
 said annual net income is derived by calculating bank account balances on a daily basis over the investment period, the calculated bank account balances reflecting the forecasted inflows and forecasted outflows over the investment period as represented by the stored data.   
     
     
         40 . A computer-implemented method according to  claim 34 , wherein:
 the forecasted inflows include values and dates for forecasted sales.   
     
     
         41 . A computer-implemented method according to  claim 34 , wherein the forecasted outflows include at least one of the following:
 ai) values and dates for inventory item purchases that are required to meet predetermined constraints for the investment,   aii) values and dates for fixed asset depreciations,   aiii) values and dates for forecasted expenses, and   aiv) values and dates for forecasted tax payments.   
     
     
         42 . A computer-implemented method according to  claim 34 , wherein the calculation of annual net income for the investment over the investment period accounts for at least one of the following:
 bi) interest payments and interest credits using respective appropriate interest rates on calculated bank account balances,   bii) tax payments due on calculated bank account balances,   biii) value added tax payments, and   biv) income tax payments.   
     
     
         43 . A computer-implemented method according to  claim 34 , wherein:
 the first values account for the value of at least one item that exists at the end of the investment period.   
     
     
         44 . A computer-implemented method according to  claim 43 , wherein:
 the at least one item is selected from the group including a fixed asset, a reserve fund, retained earnings, and bank account balance.   
     
     
         45 . A computer-implemented method according to  claim 34 , wherein:
 the first values account for at least one derivative cash flow that will take place after the investment period.   
     
     
         46 . A computer-implemented method according to  claim 34 , further comprising:
 processing the data on the computer processing system to calculate a plurality of second values based on the data, said plurality of second values representing capital contributions to the investment over the investment period;   generating a second net present value result on the computer processing system by discounting said plurality of second values; and   storing said second net present value result on the computer processing system for output to the user as part of evaluation of the investment.   
     
     
         47 . A computer-implemented method according to  claim 46 , wherein:
 said capital contributions include monies paid to the investment.   
     
     
         48 . A computer-implemented method according to  claim 46 , further comprising:
 comparing said first net present value result and said second net present value result; and   storing a result of the comparing step on the computer processing system for output to the user as part of evaluation of the investment.   
     
     
         49 . A computer-implemented method according to  claim 48 , wherein:
 the comparing subtracts the second net present value result from the first net present value result.   
     
     
         50 . A computer-implemented method according to  claim 48 , further comprising:
 outputting the result of the comparing step to the user for evaluation of the investment.