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  #11  
Old 01-13-2019, 05:28 PM
shixuzheng shixuzheng is offline
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Originally Posted by Ang88 View Post
However I have decided to use as base scenario the discount rate (6% given), the inflation rate I found (~3%) and the contingency rate (15%). I am not sure if I have to use both inflation rate and contingency rate. I have read a lot of posts here and I have seen all versions (infl 0%, contin 15% or infl x%,contin 0% or infl x%,contin 15%).

I am not sure which is right. I think that Contingency is not a substitute of x% inflation. We are instructed to use it like that, in order to find inflation, but they are not equivalent by any definition.
However I do not want to influence you.
Sure, I only keep one of inflation/contingency allowance. I see the original contingency allowance as a way to cover inflation. So having inflation will make contingency redundant. (Not to influence you too but just my opinion haha). But one can definitely argue contingency allowance can be used for other expense variability buffer.

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Originally Posted by Ang88 View Post

Regarding Modified Budget: I zero out the items I removed. However, someone could just delete them. I don't think that you have to touch the formula in last column. Personally, I did not touch any formula. Only change the values of the items to zero. All my calculations are in Net Value of Acquisition. The PV per line item is in Modified Budget Valuation Detail sheet. So I did not touch anything.
That's what I do at this point. I was trying to match the total in Budget Summary and the total in Valuation Detail, but at the end I just decide to put a comment in the Budget Summary telling people that the numbers are not adjusted yet.

For Data Summary, I literally just copied the original 2005-2006 budget summary.. Really have no idea what needs to be done.
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  #12  
Old 01-13-2019, 06:22 PM
Ang88 Ang88 is offline
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Originally Posted by shixuzheng View Post
Sure, I only keep one of inflation/contingency allowance. I see the original contingency allowance as a way to cover inflation. So having inflation will make contingency redundant. (Not to influence you too but just my opinion haha). But one can definitely argue contingency allowance can be used for other expense variability buffer.



That's what I do at this point. I was trying to match the total in Budget Summary and the total in Valuation Detail, but at the end I just decide to put a comment in the Budget Summary telling people that the numbers are not adjusted yet.

For Data Summary, I literally just copied the original 2005-2006 budget summary.. Really have no idea what needs to be done.

I will come back later regarding Data Summary. Hope finding you here.

I have another question. For the cost savings did you use the given formula (the same for all costs)? Or did you use your own?
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  #13  
Old 01-13-2019, 06:31 PM
shixuzheng shixuzheng is offline
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I will come back later regarding Data Summary. Hope finding you here.

I have another question. For the cost savings did you use the given formula (the same for all costs)? Or did you use your own?
I did. I used the one for mid-year discount.
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