PURPOSE OF TOOL

User-friendly Excel model intended for the preparation of a Cost Benefit Analysis to measure the financial feasibility for a proposed project or investment. The Cost Benefit analysis model has a monthly timeline across a 5 year period and includes 3 scenarios.

The model follows good practice financial modelling principles and includes instructions, line item explanations, 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 the following for each of the 3 scenarios:

Total oneoff costs
Average benefits per annum
Net present value (NPV)
Internal Rate of Return (IRR)
Payback years
Breakeven Quarter
Profitability Index

Results also include a summary table for each of the 3 scenarios showing the overall costs and benefits on a:

Cash View – presents actual cash impacts of proposed project/investments
Profit & Loss (P&L) View – presents P&L impacts of proposed project/investment (e.g. Depreciation for Fixed asset investments rather than cash impact)

The Results tab also includes charts showing the cumulative net cash flow over time and costs vs net benefits

KEY INPUTS

Inputs are split into one-off costs incurred during the development phase and changes in ongoing costs and revenues expected to result after implementation of the project investment (which make up the net benefits).

One-off costs are further split into:

Fixed asset investments (up to 5 categories) consisting of investments that are capitalizable rather than expenses when incurred.
Project Staff costs (up to 8 categories)
Other Project Expenses (up to 15 categories)

Net Benefits are further split into

Changes in ongoing revenues resulting from the project/investment (up to 5 categories)
Changes in ongoing staff costs resulting from the project/investment (up to 5 categories)
Changes in other ongoing expenses (up to 10 categories)

Other inputs include:

Cost of Capital (for NPV)
Inflation rate
Corporate tax rate (and tax payment assumptions)

MODEL STRUCTURE

The model contains, 10 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The only tabs to be populated by the user are the input tabs ('i_Setup' and 'i_Assumptions’ – one for each scenario). The calculation tabs (1 for each scenario) 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 good practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
The model contains a flexible timeline that allows for any mix of project development and project run periods across a 5-year period.
Timeline is split on a monthly basis and summarised on an annual basis;
The model is not password protected and can be modified as required following download;
The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
- Scenarios – 3 scenarios
- Project costs:
  - Fixed asset investments – 5 categories
  - Project staff costs – 8 categories
  - Project expenses – 15 expenses
- Ongoing costs and revenues:
  - Revenue streams – 5 categories;
  - Variable costs – 5 categories (one per revenue stream)
  - Ongoing staff costs – 5 categories
  - Ongoing other expenses – 10 categories
Cost and Revenue descriptions are fully customisable;
Project name, currency, scenarios and starting projection period, development phase and run phase 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.

MODIFICATIONS & SUPPORT

If you require any be-spoke modifications or support, we are more than happy to assist. Please send us a message below or contact us on hello@useprojectify.com