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Investment Appraisal Model with Carbon Pricing

Investment appraisal financial model with carbon pricing for up to 3 investment options to compute financial viability and compare metrics eg IRR, Payback, NPV

DOWNLOAD DETAILS:

Excel Models 

Populated & Unpopulated

€‎30.00

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.

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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 project or investment including:

  • Total one-off costs

  • NPV

  • IRR

  • MIRR

  • Accounting Rate of Return

  • Payback

  • Profitability Index

  • Equivalent Annual Cost

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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 (eg depreciation for capitalizable investments rather than cash impact)

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

KEY INPUTS

General inputs are further split into:

  • Company Name

  • Currency

  • Fist 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_'), 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 ‘o_Results’ tab.

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System tabs include the following:

  • 'Front Sheet' containing a disclaimer, instructions and contents;

  • Checks dashboard containing a summary of checks by tab.

KEY FEATURES

  • 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 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.

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