Investan

Investan is a support program for the Dynama+ program that allows comparison of development or investment scenarios developed in Dynama+. Scenarios are normally compared in pairs: the business continuing as it currently operates (without change) against an implemented change that significantly alters the operations of the business over time (with change). Comparisons are made of year by year cash flow and the value of non-cash assets (land, equipment and livestock) at the end of the budget period. The period of comparison may be either ten or twenty years. Comparison of twenty year spans requires two Dynama+ sequential files for each of the “without change” and “change” scenarios (i.e. four Dynama+ files altogether). The Investan program calculates a number of performance indicators including:

• Net Present Value (NPV) – the sum of all differences in cash flow, discounted to a present value using an interest rate set by the user, plus (or minus) the discounted value of any difference in non-cash assets at the end of the budget period
• Internal Rate of Return (IRR) – the percent return on capital (cash deficits) incurred in the change
• Annualised return
• Peak cumulative deficit (with compound interest)
• Year of peak deficit
• Payback period for the scenarios under consideration.