Once completing a first case, the user can assess the profitability of different solutions by comparing multiple cases. A final "Cases Comparison" page presents a summary of the key financial parameters for all the cases.

The appraisal tool is divided into inputs and outputs. For each case, there are 2 input sheets one for expenditures and one for expected revenues. The output for each case consists of 2 sheets, one that provides the key financial parameters ("Output"), and one that provides an annual cash flow breakdown ("Cash flows").

In particular, the sheet “Output”, consists of a table containing the key financial parameters, a graphical representation of the cumulative cash flow, and a project value map. The latter is a useful graphical representation to quickly identify the costs and expected revenues that have the greatest impact on the project.

The incomes and expenditures paybacks occur and relate to the end of the year. Costs are yearly and not split into smaller periods. Hence inputs for shorter periods should be multiplied by the number of periods in the year, e.g. for monthly data, this would be 12.

For each case, the user needs to follow the 3 steps described below, to calculate the key financial parameters associated with the project.

Step 1 Expenditures

This first step requires inputs on the expected expenditures, such as CAPEX, OPEX, and consultancy costs.

Step 2 Expected Revenues:

This second step requires the user to input expected revenues from the operations and any awarded grant.

Step 3 Output

The output page shows four key parameters Net Present Value (NPV), Internal Rate of Return (IRR),  Simple Payback time (SPT), and Discounted Payback Time (DPT). It also compares the simple and discounted cumulative cash flow.

Already have an account? Login