“Investment analysis” – User Story Backlog – Catering “Time Value of Money (TVM)”

1. User Story: As a financial analyst, I want to calculate the present value of future cash flows to determine the profitability of an investment opportunity.

– Precondition: The user has access to historical and projected cash flow data.
– Post condition: The user is able to determine the present value of the cash flows and make an informed investment decision.
– Potential business benefit: Improved decision-making and increased profitability through accurate investment analysis.
– Processes impacted: Financial planning, budgeting, and investment decision-making.
– User Story description: The user needs to input the cash flow data, discount rate, and time period to calculate the present value of future cash flows. The result will help determine the viability of the investment opportunity.
– Key Roles Involved: Financial analyst, investment manager, CFO.
– Data Objects description: Cash flow data, discount rate, time period.
– Key metrics involved: Present value of cash flows, net present value (NPV).

2. User Story: As a portfolio manager, I want to evaluate the internal rate of return (IRR) of potential investments to assess their profitability.

– Precondition: The user has access to cash flow data and investment cost.
– Post condition: The user is able to determine the IRR and make informed investment decisions.
– Potential business benefit: Improved decision-making and increased profitability through accurate assessment of investment returns.
– Processes impacted: Portfolio management, investment decision-making.
– User Story description: The user needs to input the cash flow data and investment cost to calculate the IRR. The result will help assess the profitability of potential investments.
– Key Roles Involved: Portfolio manager, investment analyst.
– Data Objects description: Cash flow data, investment cost.
– Key metrics involved: Internal rate of return (IRR), profitability index.

3. User Story: As a risk manager, I want to calculate the weighted average cost of capital (WACC) to assess the cost of financing for investment projects.

– Precondition: The user has access to the cost of debt, cost of equity, and capital structure data.
– Post condition: The user is able to determine the WACC and assess the cost of financing for investment projects.
– Potential business benefit: Improved cost assessment and decision-making for investment projects.
– Processes impacted: Risk management, investment decision-making.
– User Story description: The user needs to input the cost of debt, cost of equity, and capital structure data to calculate the WACC. The result will help assess the cost of financing for investment projects.
– Key Roles Involved: Risk manager, finance manager.
– Data Objects description: Cost of debt, cost of equity, capital structure data.
– Key metrics involved: Weighted average cost of capital (WACC), cost of financing.

4. User Story: As a financial planner, I want to calculate the future value of an investment to determine its growth potential.

– Precondition: The user has access to investment data, interest rate, and time period.
– Post condition: The user is able to determine the future value of the investment and assess its growth potential.
– Potential business benefit: Improved financial planning and investment decision-making.
– Processes impacted: Financial planning, investment decision-making.
– User Story description: The user needs to input the investment data, interest rate, and time period to calculate the future value. The result will help assess the growth potential of the investment.
– Key Roles Involved: Financial planner, investment advisor.
– Data Objects description: Investment data, interest rate, time period.
– Key metrics involved: Future value, investment growth rate.

5. User Story: As a business owner, I want to calculate the payback period of an investment to assess its profitability and liquidity.

– Precondition: The user has access to investment cost and cash flow data.
– Post condition: The user is able to determine the payback period and assess the profitability and liquidity of the investment.
– Potential business benefit: Improved decision-making and assessment of investment profitability and liquidity.
– Processes impacted: Business planning, investment decision-making.
– User Story description: The user needs to input the investment cost and cash flow data to calculate the payback period. The result will help assess the profitability and liquidity of the investment.
– Key Roles Involved: Business owner, financial analyst.
– Data Objects description: Investment cost, cash flow data.
– Key metrics involved: Payback period, liquidity ratio.

6. User Story: As a project manager, I want to calculate the net present value (NPV) of a project to assess its profitability and viability.

– Precondition: The user has access to project cash flow data and discount rate.
– Post condition: The user is able to determine the NPV and assess the profitability and viability of the project.
– Potential business benefit: Improved project evaluation and decision-making.
– Processes impacted: Project management, investment decision-making.
– User Story description: The user needs to input the project cash flow data and discount rate to calculate the NPV. The result will help assess the profitability and viability of the project.
– Key Roles Involved: Project manager, financial analyst.
– Data Objects description: Project cash flow data, discount rate.
– Key metrics involved: Net present value (NPV), profitability index.

7. User Story: As a financial analyst, I want to calculate the return on investment (ROI) of an investment to assess its profitability.

– Precondition: The user has access to investment cost and cash flow data.
– Post condition: The user is able to determine the ROI and assess the profitability of the investment.
– Potential business benefit: Improved decision-making and assessment of investment profitability.
– Processes impacted: Financial analysis, investment decision-making.
– User Story description: The user needs to input the investment cost and cash flow data to calculate the ROI. The result will help assess the profitability of the investment.
– Key Roles Involved: Financial analyst, investment manager.
– Data Objects description: Investment cost, cash flow data.
– Key metrics involved: Return on investment (ROI), profitability ratio.

8. User Story: As a financial planner, I want to calculate the present value of an annuity to determine the value of regular cash flows.

– Precondition: The user has access to annuity cash flow data and discount rate.
– Post condition: The user is able to determine the present value of the annuity and assess its value.
– Potential business benefit: Improved financial planning and decision-making for regular cash flows.
– Processes impacted: Financial planning, investment decision-making.
– User Story description: The user needs to input the annuity cash flow data and discount rate to calculate the present value. The result will help assess the value of the annuity.
– Key Roles Involved: Financial planner, investment advisor.
– Data Objects description: Annuity cash flow data, discount rate.
– Key metrics involved: Present value, cash flow value.

9. User Story: As a finance manager, I want to calculate the cost of capital to determine the minimum required return for investment projects.

– Precondition: The user has access to cost of debt, cost of equity, and capital structure data.
– Post condition: The user is able to determine the cost of capital and set the minimum required return for investment projects.
– Potential business benefit: Improved cost assessment and decision-making for investment projects.
– Processes impacted: Financial management, investment decision-making.
– User Story description: The user needs to input the cost of debt, cost of equity, and capital structure data to calculate the cost of capital. The result will help set the minimum required return for investment projects.
– Key Roles Involved: Finance manager, investment analyst.
– Data Objects description: Cost of debt, cost of equity, capital structure data.
– Key metrics involved: Cost of capital, minimum required return.

10. User Story: As a financial analyst, I want to calculate the profitability index (PI) of an investment to assess its profitability.

– Precondition: The user has access to investment cost and cash flow data.
– Post condition: The user is able to determine the PI and assess the profitability of the investment.
– Potential business benefit: Improved decision-making and assessment of investment profitability.
– Processes impacted: Financial analysis, investment decision-making.
– User Story description: The user needs to input the investment cost and cash flow data to calculate the PI. The result will help assess the profitability of the investment.
– Key Roles Involved: Financial analyst, investment manager.
– Data Objects description: Investment cost, cash flow data.
– Key metrics involved: Profitability index, profitability ratio.

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