economic Financial results

[laeti_simulation]

Hello,

I have a question regarding the financial results.

I understand every columns of this tab except the last one "%amorti". How do you calculate it ? Especialy when there is a loan redeemable with fixed annuity.

Because I thought than when "Bénef. cumul" or aka "Cumul. profit" = 0 CHF then "%amorti" should be 100%....

 

 

Thank you and have a nice day !

[Hizir Apaydin]

Hi,

The formula for Cumulative profit is Own funds + After tax profit + Self consumption savings

So, for year 1 in your example, it should be -772680 + 73 384 + 167371 = -531 925. However, the discount rate is also taken into account in order to update the value of your money. That's why your result for year 1 is -543 389 (as your money value decreases due to discount rate, the real value of your cumulative profit in "today's" value is lower).

Regarding % payback column, the formula is Total Payback / Total Investment, where Total Payback = Own funds + After tax profit + Self consumption savings + Capital repayment of Loan (only the capital part, not the interest part), and Total Investment is the investment cost defined in first tab of the economic evaluation. This formula also takes into account the discount rate.

Indeed, the capital part repaid for the loan is taken into account, this answers your remark regarding the loan with fixed annuity.

So the difference between Cumulative Profit and Total Payback, is that Total Payback takes into account the capital part of the loan as an amortization. The cumulative profit does not take into account the repayment of the capital part of the loan, as it's not an external profit.

This mainly explains why your amortized percentage does not equal 100% right away when your cumulative profit becomes positive.

In order to have more detailed explanation specific to your project, we should know your total initial investment value and the defined discount rate in Financial parameters tab.

You can export and send us your project for a more detailed analysis (PVsyst main menu File>Export project)

Regards.

[laeti_simulation]

Hello,

Thank you for your detailed answer !

I understand it more now. However, I still cannot recalculate on my own the % payback column. I think I'm still missing something...

Here is all my parameters :

Would you please calculate the first year % payback result (21.1%) with my values and describe it to me?

 

Thank you for your time 🙂

[Hizir Apaydin]

Dear Laetitia,

Your discounted payback at the end of year 1 is equal to 

(After tax profit of year 1 + Self consumption saving of year 1) /(1 + Discount Rate)^year number (this is the standard formula to take into account the discount rate)

which gives in your example

(70368+167371) / (1 + 0.1)^1 = 216126.36

As mentioned previously, the capital part of the repaid loan is also part of the payback, so your total payback at the end of the first year is equal to 216126.36 + 10361 = 226487.36

Then your payback percentage at the end of year 1 is 

Total payback of year 1 / Total investment (excluding subsidies) = 226487.36 / (1487730-415050) = 21.1%

Regards

Hizir

[laeti_simulation]

3 hours ago, Hizir Apaydin said:

Dear Laetitia,

Your discounted payback at the end of year 1 is equal to 

(After tax profit of year 1 + Self consumption saving of year 1) /(1 + Discount Rate)^year number (this is the standard formula to take into account the discount rate)

which gives in your example

(70368+167371) / (1 + 0.1)^1 = 216126.36

As mentioned previously, the capital part of the repaid loan is also part of the payback, so your total payback at the end of the first year is equal to 216126.36 + 10361 = 226487.36

Then your payback percentage at the end of year 1 is 

Total payback of year 1 / Total investment (excluding subsidies) = 226487.36 / (1487730-415050) = 21.1%

Regards

Hizir

Perfect !

Thank you so much for your clear answer 🙂

Have a nice day,

Laetitia