Period settings

Period settings determine the time structure of the project’s cash flow model. Each period type serves a different purpose in the financial modeling and analysis process.

Historical period

Defines which years will appear as historical years (P1–P2) in the cash flow model. These years are typically used for reference and baseline comparisons.

• Start year: First year of historical data (P1)

• End year: Last year of historical data (P2)

Forecast period

Defines the forecast window (P3)—this is where you input future assumptions, such as revenues, and costs. It is the key range used in modelling:

• The Base Alternative

• Strategic Building Blocks

• Strategic Alternatives

Trend period

Defines the trend period (P4), typically used for long-term projections. This period continues from the end of the forecast and usually assumes:

• A continuation of the last forecast year's assumptions

• Application of inflation rates to extend the model

Current year

The current year setting influences how data is displayed and calculated across the project. It serves three key roles:

1. It defines the year in which the inflation factor is 1, serving as the price base year in the model.

2. It acts as the cutoff point for hiding historical years when users toggle off historical data in cash flow views.

3. It determines the first visible year for capex in the Investment Plan view.

The current year is typically set to match the first forecast year, but this alignment is optional.