PURPOSE OF TOOL
User-friendly Excel model intended for the preparation of a capital budgeting analysis to determine the financial viability for up to 3 proposed investments, compare financial metrics for each investment side by side to assist in the decision-making process.
KEY OUTPUTS
The model is generic and not industry-specific. It computes a number of key appraisal metrics for proposed project or investment 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 proposed project/investments
• P&L View – presents P&L impacts of proposed project/investment (eg 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
• Fist Projection Year
• Cost of Capital
• Corporate tax rate
• Corporate tax payment assumptions
Investment Inputs for up to 3 separate investments include:
• 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
MODEL STRUCTURE
The model contains, 6 tabs split into input ('i_'), calculation ('c_'), output ('o_') and system tabs. The only tabs to be populated by the user are the input tab ('i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the template outputs presented in 'o_Results'.
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 allows the user to model the cost and benefits for up to 3 investment projects across a maximum of 15 years with annual inputs;
• Business name, currency and starting projection period are customisable;
• The model includes a checks dashboard which 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.
ABOUT PROJECTIFY
We are financial modelling professionals with experience working in Big 4 Business Modelling teams and strong experience supporting businesses with their financial planning and decision support needs. Our aim is to provide robust and easy-to-use tools that follow best practice financial modelling guidelines and assist individuals and businesses with common 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 download.
We are also keen to receive feedback so please do let us know what you think of our products/offering by sending us a message or submitting a review.
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