WHATIF ONE-PAGE MULTI-Y AXIS GRAPHING SYSTEM for automated optimization and sensitivity analysis

a multi-y axis graph and automatic optimization technology, applied in image enhancement, image analysis, instruments, etc., can solve the problems of increasing difficulty in evaluating single projects and alternative projects, significant problems, and multiple changes in project characteristics

Inactive Publication Date: 2017-03-30
DAEMS HUGO +1
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  • Summary
  • Abstract
  • Description
  • Claims
  • Application Information

AI Technical Summary

Benefits of technology

The invention provides a computer software system that allows users to create a one-page multi-Y axis X-Y graph to compare multiple financial simulations. This tool helps users see the impact of changes in project characteristics on profitability measures without the need for additional computer simulations. The graph can be customized, saved, and printed, making it convenient for users to observe the changes in dependent variables caused by changes in independent variables. The technical effect of this invention is to provide a more efficient and clear-cut way for users to analyze and optimize financial projects.

Problems solved by technology

Multiple changes in project characteristics become increasingly difficult to analyze and interpret.
This made evaluating single projects and alternative projects difficult.
This problem has been partially solved by the implementation of graphs of profitability measures but these had and still have significant problems.
We have found that existing tools fail to resolve the problem of information overflow.

Method used

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  • WHATIF ONE-PAGE MULTI-Y AXIS GRAPHING SYSTEM for automated optimization and sensitivity analysis
  • WHATIF ONE-PAGE MULTI-Y AXIS GRAPHING SYSTEM for automated optimization and sensitivity analysis
  • WHATIF ONE-PAGE MULTI-Y AXIS GRAPHING SYSTEM for automated optimization and sensitivity analysis

Examples

Experimental program
Comparison scheme
Effect test

example 1

[0182]Referring to the graph for PROJECT1 (FIG. 15), if the financial metric Volume (15V) was increased from 500 (15A) to 750 (15B), an increase of 7 grid lines, this would change the Payback value from 0.87 ( 15 D) to approximately 0.58 (15E). What change in the variable cost of labor (15U) would bring us back to the original PAYBACK profitability measure value? Since the volume changed up by 7 grid lines, changing the variable cost down by 7 grid lines (15C) would bring the PAYBACK value back to the base case line. Changing the volume to 750, up 7 grid lines, and changing the variable cost to 10, down 7 grid lines, would result to no net change in the PAYBACK value.

example 2

[0183]Referring to the graph for PROJECT1 (FIG. 15), we can make multiple changes using the GRAPH without needing to go back to the computer. From the initial starting point of our base case, we change the investment to 1200 which is down 2 grid lines. We change the price to 11 which is down 2 grid lines. We change the unit variable cost to 8.9 which is down 2 grid lines. The total change so far is down 2 grid lines+down 2 grid lines +down 2 grid lines for a total change of down 6 grid lines from the base case. What change in volume will cause no net change in the PAYBACK value from the base case? The change in volume up 6 grid lines to a new value of approximately 710 will offset the combined changes in the other 3 sensitivity variables and cause no net change in PAYBACK from the base case.

example 3

[0184]Referring to FIG. 16, the base case value for PAYBACK is 0.87 and the base case value for MINIMUM LOAN TERM is 0.53. If the only change we make from the base case is to increase volume from 500 to 600, what change will this make to the PAYBACK and MINIMUM LOAN TERM? Changing the VOLUME from 500 to 600 changes our position up almost 3 grid lines from the base case. Reading from the X-axis we can see that the PAYBACK will change from 0.87 to 0.73 and the MINIMUM LOAN TERM will change from 0.53 to 0.43.

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Abstract

A graphing system (FIG. 2) and method (200) for generating a one-page multi-Y axis graph (207) for analyzing alternate scenarios. The WHATIF SYSTEM can generate a one-page multi-Y axis graph using input from a spreadsheet file (208). The WHATIF SYSTEM can also generate a one-page multi-Y axis graph using input from one or more sets of financial project profitability measures (203). The WHATIF SYSTEM allows the user to generate a BASE CASE file (201) of a projects financial description. The BASE CASE file is simulated by the SIMULATE function (202) producing a set of profitability measures (203): Internal Rate of Return on Investment (IRROI) before taxes, IRROI after taxes, Internal Rate of Return on Equity (IRROE) after taxes, payback period, minimum equity, minimum loan, and minimum period required to repay debt. A file named WHATIF (204) defines percentage adjustments to be automatically applied to the BASE CASE file by the AUTOMATE function (205). The GRAPH function (206) generates a one-page multi-Y axis graph (207) displaying a graph of a spreadsheet file or a graph of financial metrics and profitability measures.

Description

FIELD OF THE INVENTION[0001]The invention relates to a system and method for generating a one-page multi-Y axis graph.BACKGROUND OF THE INVENTION[0002]In the fields of project feasibility analysis, project optimization, and project structuring, a project manager may evaluate likely alternatives and consider the impact of these alternatives on the profitability and potential success of a proposed project. Existing tools can calculate project profitability measures such as return on investment (ROI) and return on equity (ROE) for a single set of project characteristics including data such as price, cost, volume, and taxes. Multiple changes in project characteristics become increasingly difficult to analyze and interpret.[0003]Originally decisions whether to go forward with a project were made by gut feelings about the potential success of the project. This made evaluating single projects and alternative projects difficult. This problem has been partially solved by the implementation o...

Claims

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Application Information

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IPC IPC(8): G06T11/20
CPCG06T11/206G06T2207/20092G06T2200/24
InventorDAEMS, HUGOBRISBIN, JOE
OwnerDAEMS HUGO