SAS/ETS 9.22 User''''s Guide 303 pps

3012 F Chapter 50: InvestmentsFigure 50.19 Uniform Cashflow Specification Clicking Subtract subtracts the current cashflow from the Generic Cashflow dialog box, and it returns you to the

3012 F Chapter 50: Investments

Figure 50.19 Uniform Cashflow Specification

Clicking Subtract subtracts the current cashflow from the Generic Cashflow dialog box, and it returns you to the Generic Cashflow dialog box

You can generate arithmetic and geometric specifications by clicking them within the Series Flow Type area However, you must enter a value for the Gradient In both cases the Level value is the value of the list at the Starting Date With an arithmetic flow type, entries increment by the value Gradient for each Time Interval With a geometric flow type, entries increase by the factor Gradient for each Time Interval Figure 50.20 displays an arithmetic cashflow with a Level of 100 and a Gradient of 12

Figure 50.20 Arithmetic Cashflow Specification

Including a Forecasted Cashflow

To generate date-amount pairs for the Cashflow Specification area, follow these steps:

1 Right-click in the Cashflow Specification area and release on Forecast to open the Forecast Specification dialog box

2 Entersashelp.retailas the Data Set

3 Select SALES for the Analysis Variable

4 Click Compute Forecast to generate the forecast You can visualize the forecast in the Cashflow Chart area (seeFigure 50.21)

5 Click Add to add the forecast to the list in the Generic Cashflow dialog box Clicking Add also returns you to the Generic Cashflow dialog box

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Figure 50.21 Cashflow Forecast

Clicking Subtract subtracts the current forecast from the Generic Cashflow dialog box, and it returns you to the Generic Cashflow dialog box

To review the values from the SAS data set you forecast, click View Table or View Graph

You can adjust the following values for the SAS data set you forecast: Time ID Variable, Time Interval, and Analysis Variable

You can adjust the following values for the forecast: the Horizon, the Confidence, and choice of predicted value, lower confidence limit, and upper confidence limit

Using the Cashflow Chart

Three dialog boxes contain the Cashflow Chart to aide in your visualization of cashflows: Generic Cashflow, Flow Specification, and Forecast Specification Within this chart, you possess the following tools:

You can click on a bar in the plot and view its Cashflow Date and Cashflow Amount

You can change the aggregation period of the view with the box in the lower-left corner of the Cashflow Chart You can take the quarterly sales figures from the previous example, select YEAR as the value for this box, and view the annual sales figures You can change the number in the box to the

right of the horizontal scroll bar to alter the number of entries you want to view The number in that box must be no greater than the number of entries in the cashflow list Lessening this number has the effect of zooming in upon a portion of the cashflow When the number is less than the number of entries in the cashflow list, you can use the scroll bar at the bottom of the chart to scroll through the chart

Dialog Box Guide

Loan

Selecting Investment! New ! Loan from the Investment Analysis dialog box’s menu bar opens the Loan dialog box displayed inFigure 50.22

Figure 50.22 Loan Dialog Box

The following items are displayed:

Name holds the name you assign to the loan You can set the name here or within the Portfolio area

of theInvestment Analysisdialog box This must be a valid SAS name

The Loan Specification area gives access to the values that define the loan

Loan Amount holds the borrowed amount

Periodic Payment holds the value of the periodic payments

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Number of Payments holds the number of payments in loan terms

Payment Interval holds the frequency of the Periodic Payment

Compounding Interval holds the compounding frequency

Initial Rate holds the interest rate (a nominal percentage between 0 and 120) you pay on the loan

Start Date holds the SAS date when the loan is initialized The first payment is due one Payment Interval after this time

Initialization opens theLoan Initialization Optionsdialog box where you can define initial-ization costs and down-payments relevant to the loan

Prepayments opens theLoan Prepaymentsdialog box where you can specify the SAS dates and amounts of any prepayments

Balloon Payments opens theBalloon Paymentsdialog box where you can specify the SAS dates and amounts of any balloon payments

Rate Adjustments opens theRate Adjustment Termsdialog box where you can specify terms for a variable-rate loan

Rounding Off opens theRounding Offdialog box where you can select the number of decimal places for calculations

Create Amortization Schedule becomes available when you adequately define the loan within the Loan Specification area Clicking it generates the amortization schedule

Amortization Schedule fills when you click Create Amortization Schedule The schedule con-tains a row for the loan’s start-date and each payment-date with information about the following: Date is a SAS date, either the loan’s start-date or a payment-date

Beginning Principal Amount is the balance at that date

Periodic Payment Amount is the expected payment at that date

Interest Payment is zero for the loan’s start-date; otherwise it holds the interest since the previous date

Principal Repayment is the amount of the payment that went toward the principal

Ending Principal is the balance at the end of the payment interval

Print becomes available when you generate the amortization schedule Clicking it sends the contents

of the amortization schedule to the SAS session print device

Save Data As becomes available when you generate the amortization schedule Clicking it opens theSave Output Datasetdialog box where you can save the amortization table (or portions thereof)

as a SAS Dataset

OK returns you to theInvestment Analysisdialog box If this is a new loan specification, clicking

OK appends the current loan specification to the portfolio If this is an existing loan specification, clicking OK returns the altered loan specification to the portfolio

Cancel returns you to theInvestment Analysisdialog box If this is a new loan specification, clicking Cancel discards the current loan specification If this is an existing loan specification, clicking Cancel discards the current changes

Loan Initialization Options

Clicking Initialization in the Loan dialog box opens the Loan Initialization Options dialog box displayed inFigure 50.23

Figure 50.23 Loan Initialization Options Dialog Box

The following items are displayed:

The Price, Loan Amount and Downpayment area contains the following information:

Purchase Price holds the actual price of the asset This value equals the loan amount plus the downpayment

Loan Amount holds the loan amount

% of Price (to the right of Loan Amount) updates when you enter the Purchase Price and either the Loan Amount or Downpayment This holds the percentage of the Purchase Price that comprises the Loan Amount Setting the percentage manually causes the Loan Amount and Downpayment to update

Downpayment holds any downpayment paid for the asset

% of Price (to the right of Downpayment) updates when you enter the Purchase Price and either the Loan Amount or Downpayment This holds the percentage of the Purchase Price that comprises the Downpayment Setting the percentage manually causes the Loan Amount and Downpayment to update

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Initialization Costs and Discount Points area

Loan Amount holds a copy of the Loan Amount above

Initialization Costs holds the value of any initialization costs

% of Amount (to the right of Initialization Costs) updates when you enter the Purchase Price and either the Initialization Costs or Discount Points This holds the percentage of the Loan Amount that comprises the Initialization Costs Setting the percentage manually causes the Initialization Costs to update

Discount Points holds the value of any discount points

% of Amount (to the right of Discount Points) updates when you enter the Purchase Price and either the Initialization Costs or Discount Points This holds the percentage of the Loan Amount that comprises the Discount Points Setting the percentage manually causes the Discount Points to update

OK returns you to theLoandialog box, saving the information that is entered

Cancel returns you to theLoandialog box, discarding any changes made since you opened the dialog box

Loan Prepayments

Clicking Prepayments in the Loan dialog box opens the Loan Prepayments dialog box displayed in Figure 50.24

Figure 50.24 Loan Prepayments Dialog Box

The following items are displayed:

Uniform Prepayment holds the value of a regular prepayment concurrent to the usual periodic payment

Prepayments holds a list of date-amount pairs to accommodate any prepayments Right-clicking within the Prepayments area reveals many helpful tools for managing date-amount pairs

OK returns you to theLoandialog box, storing the information entered on the prepayments

Cancel returns you to theLoandialog box, discarding any prepayments entered since you opened the dialog box

Balloon Payments

Clicking Balloon Payments in the Loan dialog box opens the Balloon Payments dialog box dis-played inFigure 50.25

Figure 50.25 Balloon Payments Dialog Box

The following items are displayed:

Balloon Payments holds a list of date-amount pairs to accommodate any balloon payments Right-clickingwithin the Balloon Payments area reveals many helpful tools for managing date-amount pairs

OK returns you to theLoandialog box, storing the information entered on the balloon payments Cancel returns you to theLoandialog box, discarding any balloon payments entered since you opened the dialog box

Rate Adjustment Terms

Clicking Rate Adjustments in the Loan dialog box opens the Rate Adjustment Terms dialog box displayed inFigure 50.26

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Figure 50.26 Rate Adjustment Terms Dialog Box

The following items are displayed:

The Rate Adjustment Terms area

Life Cap holds the maximum deviation from the Initial Rate allowed over the life of the loan

Periodic Cap holds the maximum adjustment allowed per adjustment

Adjustment Frequency holds how often (in months) the lender can adjust the interest rate The Rate Adjustment Assumption determines the scenario the adjustments will take

Worst Case uses information from the Rate Adjustment Terms area to forecast a worst-case scenario

Best Case uses information from the Rate Adjustment Terms area to forecast a best-case scenario

Fixed Case specifies a fixed-rate loan

Estimated Case uses information from the Rate Adjustment Terms and Estimated Rate area to forecast a best-case scenario

Estimated Rates holds a list of date-rate pairs, where each date is a SAS date and the rate is

a nominal percentage between 0 and 120 The Estimated Case assumption uses these rates for its calculations Right-clicking within the Estimated Rates area reveals many helpful tools for managing date-rate pairs

OK returns you to theLoandialog box, taking rate adjustment information into account

Cancel returns you to theLoandialog box, discarding any rate adjustment information provided since opening the dialog box

Rounding Off

Clicking Rounding Off in the Loan dialog box opens the Rounding Off dialog box displayed in Figure 50.27

Figure 50.27 Rounding Off Dialog Box

The following items are displayed:

Decimal Places fixes the number of decimal places your results will display

OK returns you to theLoandialog box Numeric values will then be represented with the number of decimals specified in Decimal Places

Cancel returns you to theLoandialog box Numeric values will be represented with the number of decimals specified prior to opening this dialog box

Savings

Selecting Investment! New ! Savings from the Investment Analysis dialog box’s menu bar opens the Savings dialog box displayed inFigure 50.28