Discounted Cash Flow Software for Project Management

Written by:  • Edited by: Marlene Gundlach
Published Dec 14, 2008

How discounted cash flow software helps out with project management

Your Project's Health: DCF Projections for Funding

Discounted cash flows (DCF), a business valuation technique, can be a real asset to you as a project manager, but in order to use its computation powers, you'll need to know where your money is coming from, and how long it will take to reach you. When you get a grasp of these details, you can use DCF and other business valuation principles to see what your project bank accounts will really look like.

For example, if you are mainly funded by some public agency that disburses its money annually, you will be able to make annual estimates that you can plug into DCF software tools along with tax and currency data. The software tools will come back with actual values of these cash injections with consideration of the factors that influence cash value over time.

Additional sources of funding, such as private donations, are another representation of how a human project manager and valuation software work together. The PM will figure out estimates for donation amounts and times that they are expected to be received and the DCF software will crunch the numbers and see what value those donations will bring to the table.

Looking at Software Firm DCF Options

Large software firms offer DCF applications for project management. Find online downloads from Wheatworks, a top financial software provider, or get free trials from online companies like SurvivalWare to test how DCF can work for your projects.

Other independent web sites illustrate how basic DCF is similar to any other business calculation, where a "calculator" tool can do a lot of the necessary work. You can find a free online discounted cash flow financial tracking tool from the site of Dave W. Farthing of the University of Glamorgan here. Other free discounted cash flows calculators are available on the net to help out with getting accurate funding values for yor projects. If you haven't ever used these kinds of resources, don't stay in the dark ages; bring DCF solutions into your toolbox!

Read Eschulze's article "Earned Value Management to Control Cash Flow" for more helpful information.


 
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