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Calculating Net Value

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The Net Value of a project is the total expected value of a project after calculating its benefit and removing the costs. 

You can find the Net Value for a project in the following areas in Workfront:

  • In the Business Case Summary. 
    For more information about the Business Case of a project, see "Creating a Business Case."
  • In a project report when you add the Net Value field to the columns of the report. 
    For more information about building reports in Workfront, see "Creating a Report."
  • In the Portfolio Optimizer, when the project is associated with a Portfolio. 
    The sum of all Net Values of all projects in the portfolio adds up to the Net Value of the Portfolio. 
    For more information about the Portfolio Optimizer, see "Understanding the Portfolio Optimizer."

The Net Value of a project is calculated using the following formula: 

Project Net Value = Benefit - Budgeted Cost - (Risk Probability * Potential Cost of Risk).

net_value_in_BC_summary.png

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This is linked to Understanding the Portfolio Optimizer.