← All prebuilt solutions
Planning & Finance

Investment Appraisal

NPV, IRR, payback and sensitivity for up to three projects – and which to choose

£20

Secure checkout. Your download link is sent as soon as payment clears.

Investment Appraisal

Overview

Before you spend serious money on a new machine, a shop, a vehicle fleet or an energy project, you need to know whether it will earn more than the money costs you – and how sure you can be. This workbook turns your forecasts into year-by-year cash flows after tax, works out every standard investment measure, shows how far your forecasts could be wrong before the project stops paying, and compares up to three projects side by side.

Price
£20
Who it’s for
Planning & Finance
Works with
Microsoft Excel for Windows and Mac
Buy now

See how it works

A walk through the main sheets

The sheets you will use most, in the order you will use them – shown with the sample data every workbook comes with.

Step 1

Projects

Inputs for up to three projects. What you do: enter each project's figures.

Projects
Cash Flows

Step 2

Cash Flows

Year-by-year cash flows before and after tax, capital allowances, funding and all the measures for each project. What you do: nothing – check the workings.

Step 3

Compare

The three projects side by side, ranked, plus the NPV profile table and chart data. What you do: optionally change the yellow discount rates in the NPV profile.

Compare
Sensitivity

Step 4

Sensitivity

Tornado table and chart, break-even changes, discount rate × growth table and scenario results for the selected project. What you do: optionally change the two step sizes.

Who it is for

Made for people like you

  • Example – text
  • Measure – What it tells you
  • NPV (net present value) – The value the project adds in today's money after paying for the cost of capital. Positive = worth doing.
  • IRR / MIRR – The return the project earns each year. Compare with your discount rate (hurdle).
  • Payback / discounted payback – How long until you get your money back – plain, and in today's money.
  • Profitability index – NPV earned per £1 invested – the way to rank projects when money is limited.
  • ARR / ROCE – Average accounting profit as a % of the investment – the measure lenders and boards often quote.

Quick start

Up and running in minutes

  1. Example – text
  1. Settings – tax – Choose your business type and tax year, then enter your profits (companies) or tax band (sole traders), when tax is paid and how losses are treated.
  2. Settings – money – Enter selling price and cost inflation, then either use the WACC helper or enter your own discount rate. Set a target payback.
  3. Projects – For each project enter the name, life, year-1 revenue, growth, variable cost %, working capital %, residual value and allowances, then the yearly rows: capital spending, ramp-up, cost savings and fixed costs.
  4. Dashboard – Pick the project to show on Settings ('Project shown on the dashboard & sensitivity'). Read the tiles, the one-line summary, the comparison table and charts.
  5. Sensitivity – See which forecasts matter most, how far each could move before the NPV hits zero, and the optimistic / pessimistic results.
  6. Compare – Rank the projects by NPV and by profitability index and read the decision for each.

Key features

  • Appraise a new machine, vehicle fleet, energy project, shop or any business investment over up to 10 years, with inflation, working capital, residual value and tax.
  • Every standard measure: NPV, IRR, MIRR, payback and discounted payback, profitability index and ARR / ROCE – with a WACC helper for the discount rate.
  • Tornado sensitivity (±10% / ±20%), break-even changes, a discount rate × revenue growth table and optimistic / pessimistic scenarios.
  • Compare up to three projects side by side with a ranking, NPV profile chart and the cash you'll need after any bank loan.

What’s included

  • Dashboard – The answer at a glance
  • Settings – Tax, inflation, discount rate and scenarios
  • Projects – Inputs for up to three projects
  • Cash Flows – Year-by-year cash flows and measures
  • Compare – Projects side by side and ranked
  • Sensitivity – Tornado, break-even and two-way table
  • Sensitivity Workings – The model re-run for each case
  • Tax Rates – UK tax rates by year
  • Guide – How to use this workbook

How buying works

Your file is only released once payment has cleared.

1

Click Buy now

You are taken to our secure checkout.

2

Pay securely

Checkout takes a minute and you get a receipt by email.

3

Download your file

Your download link arrives as soon as payment clears.

Explore the range

Need it tailored to your business?

We can adapt any prebuilt solution or build something bespoke, with a lifetime bug-free guarantee.

Part of AML Finance Group

Need an accountant too?

Our sister firm, AML Accountancy Solutions, is an award-winning accountancy practice helping businesses and individuals across the UK with their accounts, tax, bookkeeping and payroll.

Visit AML Accountancy Solutions