Parameter Name

Details

Calculation

Production

The user can set a factor that will be applied to the monthly production.

Monthly Production * factor

Production Degradation

The user can set an annual percentage degradation of production output, it will be applied on a monthly basis. Can be calculated as %/year or %/year gradual decline.

 

Gradual decline starts one month after production is at full capacity, two months after Cut-Off-Date. Gradual decline spreads the decline each month.

 

Yearly decline spots down each year, starting from the Cut-Off-Date. The step down will be on month 13.

Gradual Decline: 

Production * ((1-factor%)^1/frequency))

The frequency will be set to 12 for monthly, or 4 for quarterly, etc.

 

Yearly Decline: 

Production * (1-factor%)

Monthly Production Haircut

The user can apply a monthly haircut to both:

  • The revenue fields, such as: net operating income, total project revenue, etc.
  • The monthly production
  • Monthly Haircut factor *
  • Revenue Fields Monthly Production * factor

Cash Flow Adjustment

This is applied to the net revenue from a project. The revenue haircut can be applied as a $ value deduction (absolute value) or as a factor of net revenue (factor).

The Cash Flow adjustment is calculated similarly to the haircut, but only on the NOI if unit chosen is factor.

Units available:

  • Factor
  • $

Factor unit calculation:

Cash Flow Adjustment * NOI