Smoky industrial landscape representing carbon pricing impacts in financial modeling.

PURPOSE OF MODEL

User-friendly Excel model intended for the preparation of investment appraisals, including the impact of carbon pricing, for up to 3 investment options. The model helps to determine the financial viability and compare financial metrics for each investment option side by side to assist the decision-making process.

The model follows good practice financial modelling principles and includes instructions, checks, and input validations.

KEY OUTPUTS

The model is generic and not industry-specific. It computes a number of key appraisal metrics for proposed projects or investments, including:
– Total one-off costs
– NPV
– IRR
– MIRR
– Accounting Rate of Return
– Payback
– Profitability Index
– Equivalent Annual Cost

Results also include tables showing the overall costs and benefits on a:
– Cash View – presents actual cash impacts of each investment option
– P&L View – presents P&L impacts of each investment option (e.g., depreciation for capitalizable investments rather than cash impact)

The Results tab also includes charts showing the cumulative net cash flow and net earnings over the investment period.

KEY INPUTS

Inputs are split into general and investment-related inputs.

General inputs are further split into:
– Company Name
– Currency
– First Projection Year
– Cost of Capital
– Corporate tax rate and payment assumptions
– Carbon tax details and payment assumptions

Investment Inputs for up to 3 separate investment options, including:
– Investment Name
– Investment Starting period & Lifetime
– Initial investment amount (split into Capitalisable and Non-capitalisable)
– Impact of investment on Revenues
– Impact of investment on Costs
– Variable costs % of Revenues
– Working capital % of Revenue
– Carbon emissions and related details

MODEL STRUCTURE

The model contains 5 tabs split into input (‘i_’), the calculation (‘c_’), output (‘o_’), and system tabs. The tabs to be populated by the user are the input tabs are the input tab (‘i_Assumptions’). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs, which are presented in the ‘o_Results’ tab.

System tabs include the following:
– ‘Front Sheet’ containing a disclaimer, instructions, and contents;
– Checks dashboard containing a summary of checks by tab.

KEY FEATURES

Other key features of this model include the following:
– The model follows best practice financial modelling guidelines and includes instructions, line item explanations, checks, and input validations;
– The model is not password protected and can be modified as required following download;
– The model allows the user to model the cost and benefits for up to 3 investment options across a maximum of 15 years with annual inputs;
– Business name, currency, and starting projection period are customizable;
– The model includes a checks dashboard that summarises all the checks included in the various tabs making it easier to identify any errors;
– The model includes checks and input validations to help ensure input fields are populated accurately.

MODIFICATIONS

If you require any be-spoke modifications to the tool, we are more than happy to assist with this. Please send us a message through the Contact Author button or contact the support team.

ABOUT PROJECTIFY

We are financial modeling professionals with experience working in big 4 business modeling teams and strong experience supporting businesses with their financial planning and decision support needs. Our aim is to provide robust and easy-to-use models that follow good practice financial modelling guidelines and assist individuals and businesses with key financial planning and analysis processes.

We are keen to make sure our customers are satisfied with the tools / models they purchase and will be more than happy to assist with any questions or support required following or in advance of purchase.

We are also always keen to receive feedback, so please do let us know any feedback you have on our models by sending us a message or submitting a review.

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