Deflating Cashflows :: SAS/ETS(R) 12.1 User's Guide

Consider the example described in the section The Compute Menu. To create the cashflow to deflate, follow these steps:

Select Investment $\rightarrow$ New $\rightarrow$ Generic Cashflow to open a new generic cashflow.
Enter CD_DEFLATED for Name.
Load WORK.CD_POUNDS into its Cashflow Specification (see Figure 56.6).
Click OK to return to the Investment Analysis dialog box.

Figure 56.6: The CD before Deflation

To deflate the values, follow these steps:

Select CD_DEFLATED from the portfolio.
Select Compute $\rightarrow$ Constant Dollars from the menu. This opens the Constant Dollar Calculation dialog box.
Clear the Variable Inflation List area.
Enter 3 for the Constant Inflation Rate.
Click Create Constant Dollar Equivalent to generate a constant dollar equivalent summary (see Figure 56.7).

Figure 56.7: CD Values after Deflation

You can save the deflated cashflow to a SAS data set for use in an internal rate of return analysis or breakeven analysis.

Click Return to return to the Investment Analysis dialog box.