ComboCurve: ARIES Discounted Cashflow: Comparison (with Excel workbook)

ComboCurve: ARIES Discounted Cashflow: Comparison (with Excel workbook)


Which cashflow discounting methods match between ComboCurve and ARIES?

  1. In ComboCurve, choose your Project and Scenario and go to General Options and set:
    1. Discounting Method to Yearly (N=1), and
    2. Cash Accrual Time = Mid Month
                          
                          

  1. In ARIES under Economics...Setup...Current Input Settings, Present Worth Component...Discount Method... choose Monthly (and ensure Discount Date = Effective Date)                                                        

Because the ARIES Monthly discounting method discounts from mid-month, regardless of timeframe settings, the Yearly (N=1) with Mid-Month discounting has been found empirically to match ARIES.  For a detailed comparison of discounting methods, please see the attached spreadsheet.                                                                

Excel Spreadsheet Comparison of Discount Factors from ComboCurve and ARIES
  1. This macro-enabled Excel workbook contains actual output discount factors using each of the various methods from ComboCurve and ARIES, along with rollups to yearly.   
    1. If the above link does not work, navigate here and download the attachment.
  1. Also included are cell formulas that demonstrate how each application calculates discounting.