Economic Evaluation Parameters Dialog: Financing Tab

This tab is part of the ‘Economic Evaluation Parameters for Entire Project’ dialog; for more details, see Economic Evaluation Parameters for Entire Project Dialog.

Variable Definitions, Ranges and Default Values

The following table shows a brief description of the variables appearing in this tab. The table also displays their default values and their generally acceptable range:

Variable	Default Value	Range

○ Debt (%) The percentage of a project’s capital costs that comes from a loan; individual debt percentages can be specified for annual expenses related to direct fixed capital (DFC), working capital, up-front research and development (R&D) and up-front royalties; for more details on how these are implemented, see Debt Financing.	0	Positive
○ Loan Period (Years) The payback time in years of a project loan; individual loan periods can be specified for loans related to DFC, working capital, up-front R&D and up-front royalties; for more details on how these are implemented, see Loan Payments.	10 or 6	Positive
○ Loan Interest (%) The percent interest rate of a project loan; individual rates can be specified for loans related to DFC, working capital, up-front R&D and up-front royalties; for more details on how these are implemented, see Loan Payments.	9 or 12	0-100
○ DFC Outlay (%) The distribution of the project’s DFC into the first five years of the project; annual DFCs can be specified for the first five years of the project as percentages of the project’s total DFC; for more details on how these are implemented, see Capital Expenses.	0	Positive
○ Depreciation Period (Years) The time in years during which depreciation of the project’s DFC is considered; for more details on how this is implemented, see Depreciation.	10	Positive
○ Salvage Value (%) The percentage of the project’s DFC that corresponds to its value at the end of the depreciation period; for more details on how this is implemented, see Depreciation.	5	0-100
○ Is Depreciation Subtracted from Net Profit? Check this box in order to calculate the annual net profit without depreciation included; for more details, see Profits.	No	Yes/No

Symbol Key: ○ User-specified value (always input); ● Calculated value (always output); ◙ Sometimes input, sometimes output

Specification Choices / Comments

The following list describes the available specification choices in this tab:

•Depreciation Calculation Method...

SuperPro Designer depreciates the fraction of a section’s DFC that is assigned to this project and has not been depreciated already minus its salvage value at the end of the project lifetime. For cash flow analysis calculations, you can choose among three classical methods of depreciation, namely: (a) the straight-line method, (b) the declining balance method, and (c) the sum-of-the-years-digit method. For profitability analysis calculations, the straight-line method is used by default; for more details, see Depreciation.

•Is Depreciation Subtracted from the Net Profit?...

If this box is not checked, the annual depreciation will be added to the annual net profit. If this box is checked, then the annual depreciation will not be included in the annual net profit; for more details, see Profits.