Setting up for Automatic IRR Calculations

Overview

The system provides for Automatic Unlevered IRR calculations for each site.

Any change to date Estimates, Cost Estimates or post "Placed in Service" Revenues and Expenses will automatically be updated in the IRR calculation on the IRR Report.

The calculation is based on one year periods and uses the standard IRR calculation.

The Cash in includes: Site Revenue, ITC Credits and the Tax Savings of the MACRS Calculation

The Cash out includes: Site Expenses. Project Cost, Allocation of Financing costs, Pre "Placed in Service" Interest, and the Tax impact of net Site Revenues and Expenses.

Setting up for Automatic IRR Calculations

A) Setting up the Site Metrics - When a new site is opened the Site Metrics section needs to be filled in to provide the necessary data for the IRR Model to work.

Step 1, Open the SITES tab and view each site for complete information. The first site is completely filled in (1). If any of the site metrics are not filled init will impact the IRR Model (2)

Step 2, open the Site and the Site Metrics section (1). Fill in the missing information.

Step 3, To locate the current cost estimate to build the project, click on the Costs tab on the site (1) and view the current cost estimate (2). The Current Cost Estimate is used in the Expense section of the IRR Calculation.

B) Using the Site Metrics to model the post Placed in Service Revenue and Expense Stream.

Step1 , Open the SITE REV & EXP Tab (1) and click New Site Rev & Exp button (2).

Step 2, Fill in the metrics for each Revenue or Expense associated with the site (1). Note the Site & Storage Metrics section is filled in from the information on the Site (2).

Refernce Material for Site Revenue & Expenses

Site Revenue & Expense Instructions

C) Setting up Financing Structures for pre "Placed in Service" interest calculations.

The IRR model project development interest in the calculation. The interest will continue to accrue until the "Placed in Service" Milestone is completed.

Refernce Material for setting up Portfolio Financing

Portfolio Financing Instructions

D) Other Miscellaneous setup

Step 1, Prepare for the ITC calculation. The ITC rate is set on the specific Site in the Site Metric section.

Step 2, Prepare for the MACRS impact. The Tax Rate is set in Global Settings (1,2)

Step 3, The MACRS information can be updated in the DEPRECIATION Tab.

E) Reporting & Analysis

The IRR home page tab shows the Unlvered IRR for every site (1), Detailed Report Links for Site Revenue and Expenses (2), MACRS Calculations (3) and Development/Construction Inyerest (4).

The ability to Expand each project showing The annual impact (1) and the details of Cash in (2).

And the details of Cash out (3)

Remember, all of this information can be added or changed at any time.