LearnVBA83
Board Regular
- Joined
- Dec 1, 2016
- Messages
- 113
- Office Version
- 365
- Platform
- Windows
Hi there,
I'm new to a finance role coming from accounting and i'm trying to figure out what would be the best formula to use to calculate a meaningful %/rate for cost savings initiatives. I've tried IRR and getting weird results b/c there is really no big initial investment. Any thoughts and ideas would be greatly appreciated. Maybe ROI or MIRR. Below is a made up scenario. Should i incorporate some kind of PV or NPV into the formulas???
I'm new to a finance role coming from accounting and i'm trying to figure out what would be the best formula to use to calculate a meaningful %/rate for cost savings initiatives. I've tried IRR and getting weird results b/c there is really no big initial investment. Any thoughts and ideas would be greatly appreciated. Maybe ROI or MIRR. Below is a made up scenario. Should i incorporate some kind of PV or NPV into the formulas???
| Cost | Gross Savings | Net Savings | |
2022 | $ 57.71 | $ 139.50 | 81.79 |
2023 | $ 88.64 | $ 138.33 | 49.69 |
2024 | $ 76.16 | $ 125.91 | 49.75 |
2025 | $ 51.45 | $ 50.94 | (0.51) |
| Total | $ 273.96 | $ 454.68 | $ 180.72 |
