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Calculate first-year value, ACV and TCV for a multi-year deal
- For Revenue operations
- You practice Catching mistakes and made-up facts
- Time about 5 minutes
- Level Intermediate
About this exercise
Calculate three values for the multi-year deal in exactly 4 plain-text lines starting First-year value:, ACV:, TCV:, Excluded:. ACV is the average of the yearly subscription amounts; TCV is the sum of all years of subscription. Show the math in the first three lines. Excluded names the one-time fee and its amount, which are not part of any of the three values.
Common mistakes when you ask AI for this
- Including the one-time fee. The AI uses $104,000 as TCV. Try: Add: "Exclude one-time fees from all values."
- ACV as TCV. The AI states ACV as $99,000. Try: Add: "ACV is the average yearly amount."
- No math. The AI states results only. Try: Add: "Show the math in the first three lines."
- Wrong structure. The AI writes a table and prose. Try: Add: "Four labeled lines, plain text."
What a strong prompt includes
- Lists the four labels
- Defines ACV
- Defines TCV
- Excludes the fee
- Asks for the math
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