Financial Appraisal of Investment Project Capital Project Investment Appraisal Guidance Notes Version Date 29 by jpd18172

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									                        Capital Project Investment Appraisal - Guidance Notes
                                              Version Date: 29 May 2007

    1     GENERAL

               a    This capital project investment appraisal (CPIA) is designed to promote compliance with the HM
                    Treasury Green Book guidance.
               b    This CPIA model contains five sheets:
                        (i)     Guidance notes on using the CPIA model.
                        (ii)    A summary sheet for the project on which are shown, for example, the requested amount
                                of LSC grant and the Net Present Value (NPV); the summary also shows a few key
                                indicators and a set of sensitivity analysis results.
                        (iii)   An input sheet which spans 21 years (0 to 20) and is used as the basis for calculating the
                                NPV at the Government discount rate of 3.5% over the same period. The model allows for
                                the recording of 21 years worth of information (years 0 to 20 inclusive), with automatic
                                completion of years 6 onwards, where appropriate.
                        (iv)    A sensitivity analysis sheet which automatically calculates the impact on the Net Present
                                Value of different % changes in three key costs or benefits: capital costs; disposal
                                receipts; and FE funding income.
                        (v)     A multi sensitivity sheet which allows for modelling the impact on the Net Present Value of
                                different % changes in one or more costs or benefits at the same time.
               c    The CPIA model should be completed for each capital project option.
               d    The financial figures (costs and benefits) used in the model should be at constant prices, ie excluding
                    inflation. The Government's general inflation rate is 2.5%, and this should be the normal basis for
                    differences between the CPIA and the financial plan figures.
               e    All and only those costs and benefits relevant to the project should be recorded in the CPIA.
               f    Each completed CPIA should be supported by assumptions used to compile the financials. If further
                    working papers are considered necessary to support the data supplied then these should also be
                    attached to the project application.
               g    Cells shaded blue on the input sheet contain formulae and do not need to be completed. Cells
                    shaded grey are calculated automatically but may be amended, where necessary.
               h    Many cells or lines have a help (comment) facility to assist completion of the CPIA model. Additional
                    guidance on certain elements is included below. Guidance is also available from the Regional
                    Provider Financial Management team.


    2     SUMMARY SHEET

          a.        The first page of the summary sheet provides an overall statement of the funding and financing of the
                    project, including short-term borrowing, at the requested level of Council support. It also reports the
                    project's Net Present Value.

          b.        The second page provides a series of key indicators to help assess the effect and reasonableness of
                    many of the costs and benefits included in the investment appraisal.
                    It also reports a series of sensitivity analysis results for the key costs and benefits included in the

    3     INPUT SHEET

               a.   The input sheet contains seven sections:
                        1      General Project Information - Gross internal areas of new build, refurbishment and
                               disposal, along with the Estimated Life of the Asset.
                        2      Capital Investment Costs - Capital-related costs directly applicable to the project,
                               including land, buildings and professional fees.


528aaf27-8be8-48e2-8450-1219515477ea.xls                                                                              2/3/2011
NOTES                                                                                                                   Page 1
                       Capital Project Investment Appraisal - Guidance Notes
                                             Version Date: 29 May 2007
                        3     Sources of Funding and Financing (Cash) - Details of funding sources and financing for
                              the capital investment costs. Note: Only disposals related to the project are included in
                              the NPV calculation.
                        4     Income - income derived from learners and any other sources as a result of the project.
                              For FE provision, the funding rate per FTE should only change from year to year where
                              there is change in the mix of provision.
                        5     Staffing Costs - Additional staffing costs (or savings), as a result of the project. This is
                              divided into teaching and non-teaching sub-sections.
                        6     Premises costs - This covers premises-related operational costs and savings as a result
                              of the project; one-off costs and savings during the construction phase; planned
                              maintenance costs; and costs of future major refurbishments to ensure buildings are
                              brought up to date / remain in a fit for purpose state.
                        7     Other Costs - This covers any other operational costs as a result of the project, eg
                              teaching materials.
              b.              Buttons are provided at the top of the sheet to enable users to show (or hide) and print 5,
                              10 or 20 years of information.
              c.              The comments associated with each input field/row are designed to be self-explanatory.
                              Additional guidance is given below on specific elements.
                              Free Land (Section 2) - The opportunity cost of land already owned should be included in
                              the investment appraisal where appropriate, to enable a valid comparison between
                              options: for example, where one option involves acquisiton of land.
                              Residual value (Section 2) - The residual value of the asset (at year 20) should be
                              included in the investment appraisal. The model calculates this value based on the initial
                              cost, the estimated life of the asset, and depreciation in the 20 year period. The
                              calculated result should therefore broadly reflect the asset value in the accounts at year
                              20.
                              One off costs (Section 6) - These are additional premises-related costs associated with
                              the project, which are not eligible for capital project support.
                              One off savings (Section 6) - These are premises-related savings during the
                              implementation phase of the project. They should consist only of costs that would have to
                              be incurred if the project did not happen.
                              Renewal/refurbishment costs (Section 6) - These are substantial premises-related costs
                              to maintain or enhance the useful life of the asset.




528aaf27-8be8-48e2-8450-1219515477ea.xls                                                                              2/3/2011
NOTES                                                                                                                   Page 2
                                             LSC CAPITAL INVESTMENT APPRAISAL SUMMARY

                                  Name of college :
           1

           2                      Name of project :
           3         Initial academic year of investment :    2007/08
           4                                                                         Construction years :
           5                 Brief description of project :




               c
               FOR PROJECT :                                                                           £000
                            APPROVAL REQUESTED FOR :
                            Total Capital Cost (cash)                                                       0
                            Total Borrowing                             Long Term                           0
           6                                                            Short Term                          0
                            Total Disposals                                                                 0
                            Total Council Support                                                           0               0%
                            Sources of Funds :                                                                        % of Total
                            College contribution                                                            0              0%
                            Requested Council contribution                                                  0              0%
                            ERDF/RDA grants                                                                 0              0%
                            Other public sector grants (incl. HEFCE)                                        0              0%
                            Other (private finance)                                                         0              0%
                            Other                                                                           0              0%
                            Total Funding                                                                   0              0%
                            Financed by :
                            Disposal proceeds                                                               0              0%
                            Long term leasing (capital)                                                     0              0%
                            Long term loan                                                                  0              0%
                            College reserves (cash)                                                         0              0%
                            Requested Council contribution                                                  0              0%
                            ERDF/RDA grants                                                                 0              0%
                            Other public sector grants (incl. HEFCE)                                        0              0%
                            Other (private finance)                                                         0              0%
                            Other                                                                           0              0%
                            Total Financing                                                                 0              0%
                            NPV AT 3.5% Test Discount Rate (TDR) (£'000) over 20 years                                       0
                                                                                                                 as at 2007/08




                                                                                                                528aaf27-8be8-48e2-8450-1219515477ea.xls
2/3/2011                                                                  3 of 9                                                              SUMMARY
               KEY INDICATORS
               College & Project :- -

               VALUE FOR MONEY INDICATORS

               Payback period from Year 0                                                                                          0

               Internal Rate of Return for project over 20 years                                                                 0.00%

               NPV / LSC Contribution ratio                                                                                       0.0

               NPV / Total Capital Cost ratio                                                                                     0.0


               PROPERTY INDICATORS

               Cost of new building per m²                                                                              £          0

               Cost of refurbishment per m²                                                                             £          0

               Furniture & equipment as a % of total capital costs                                                                0%

               Professional fees as % of construction costs                                                                       0%

               Running costs per m² for project - new buildings & refurbishment @ yr 5                                  £          0


               OTHER INDICATORS

               Marginal student / teaching staff ratio @ yr 5                                                                     0.0

               Capitation per FTE (£) @ yr 5                                                                            £          0

               Cumulative Growth in FE FTEs                          Year 1        Year 2        Year 3        Year 4           Year 5
                                                                      0%            0%            0%            0%                0%
               FTEs Prior to Project                                 Year 6        Year 7        Year 8        Year 9           Year 10
           7                                                          0%            0%            0%            0%                0%




               SENSITIVITY ANALYSIS (NPV Impact)

                                                                      5%           10%           15%           20%                        Multi Sensitvity
                                                                     £000          £000          £000          £000                          Analysis
               Capital Costs Increase                                         £0            £0            £0            £0                      10%
               Disposal Receipts Decrease                                     £0            £0            £0            £0                      10%
               FE Funding Income Decrease                                     £0            £0            £0            £0                      10%
               Other Income Decrease                                                                                                            10%
               Staff Costs Increase                                                                                                             10%
               Premises Costs Increase                                                                                                          10%

                                                                                                                                               £000
                                                                                                                                                £0




                                                                                                                             528aaf27-8be8-48e2-8450-1219515477ea.xls
2/3/2011                                                                           4 of 9                                                                  SUMMARY
      College & Project : -
SECTION 1: GENERAL PROJECT INFORMATION
                                                                       Year ending 31 July
      Total gross internal area of new build                              2007        2008       2009        2010        2011        2012        2013        2014        2015           2016        2017        2018        2019        2020        2021        2022        2023        2024        2025        2026           2027
                                                                          YR0          YR1       YR2         YR3         YR4         YR5         YR6         YR7         YR8            YR9         YR10        YR11        YR12        YR13        YR14        YR15        YR16        YR17        YR18        YR19           YR20
   Note: These should be cumulative figures                                    m²          m²           m²          m²          m²          m²          m²          m²             m²          m²          m²          m²          m²          m²          m²          m²          m²          m²          m²          m²             m²
 8 Total gross internal area of new build                                                                                                                0           0              0           0           0           0           0           0           0           0           0           0           0           0              0
 9 Total gross internal area refurbished                                                                                                                 0           0              0           0           0           0           0           0           0           0           0           0           0           0              0
10 Total gross internal area leased (capital)                                                                                                            0           0              0           0           0           0           0           0           0           0           0           0           0           0              0
11 Less: Total Disposals internal area                                                                                                                   0           0              0           0           0           0           0           0           0           0           0           0           0           0              0
   Net Increase/Decrease In Accommodation                                        0           0           0           0           0           0           0           0              0           0           0           0           0           0           0           0           0           0           0           0              0

12 Estimated life of the asset (years)                      50

SECTION 2: CAPITAL INVESTMENT COSTS
                                                                       Year ending 31 July
13                                                                        2007        2008       2009        2010        2011        2012        2013        2014        2015           2016        2017        2018        2019        2020        2021        2022        2023        2024        2025        2026           2027
                                                           Total          YR0         YR1        YR2         YR3         YR4         YR5         YR6         YR7             YR8        YR9         YR10        YR11        YR12        YR13        YR14        YR15        YR16        YR17        YR18        YR19           YR20
                                                           £000           £000        £000       £000        £000        £000        £000        £000        £000        £000           £000        £000        £000        £000        £000        £000        £000        £000        £000        £000        £000           £000
14                    Free land (opportunity cost)                 0                                                                                                                                                                                                                                                                   0

15                    Value of land purchased                      0                                                                                                                                                                                                                                                                   0
16                    Value of building(s) purchased               0                                                                                                                                                                                                                                                                   0
17                    New building cost                            0                                                                                                                                                                                                                                                                   0
18                    Refurbishment cost                           0                                                                                                                                                                                                                                                                   0
19                    External works                               0                                                                                                                                                                                                                                                                   0
20                    Preliminaries                                0                                                                                                                                                                                                                                                                   0
21                    Leasing - capital value                      0
22                    Contingencies                                0                                                                                                                                                                                                                                                                   0
23                    Furniture and equipment                      0
24                    Professional fees                            0                                                                                                                                                                                                                                                                   0
25                    Total VAT                                    0                                                                                                                                                                                                                                                                   0


                      Capital Cost (Cash)                          0             0           0           0           0           0           0           0           0              0           0           0           0           0           0           0           0           0           0           0           0              0
                      Capital Investment Costs                     0             0           0           0           0           0           0           0           0              0           0           0           0           0           0           0           0           0           0           0           0              0


SECTION 3: SOURCES OF FUNDS AND FINANCING (Cash)
                                                                       Year ending 31 July
                                                                          2007        2008       2009        2010        2011        2012        2013        2014        2015           2016        2017        2018        2019        2020        2021        2022        2023        2024        2025        2026           2027
                                                              Total       YR0          YR1       YR2         YR3         YR4         YR5         YR6         YR7         YR8            YR9         YR10        YR11        YR12        YR13        YR14        YR15        YR16        YR17        YR18        YR19           YR20
                                                              £000        £000        £000       £000        £000        £000        £000        £000        £000        £000           £000        £000        £000        £000        £000        £000        £000        £000        £000        £000        £000           £000
      Disposals - related buildings
26                                                                 0
                                                                   0
                                                                   0
                                                                   0
                                               Sub Total           0             0           0           0           0           0           0           0           0              0           0           0           0           0           0           0           0           0           0           0           0              0

      Disposals - unrelated buildings
27                                                                 0
                                                                   0
                                                                   0
                                               Sub Total           0             0           0           0           0           0           0           0           0              0           0           0           0           0           0           0           0           0           0           0           0              0

      Total Disposals                                              0             0           0           0           0           0           0           0           0              0           0           0           0           0           0           0           0           0           0           0           0              0

 28   Requested Council contribution                               0
 29   ERDF/RDA grants                                              0
 30   Other public sector grants (incl HEFCE)                      0
 31   Other (private finance)                                      0
 32   Other                                                        0
 33   Long term leasing (capital value)                            0
      Sub total                                                    0             0           0           0           0           0           0           0           0              0           0           0           0           0           0           0           0           0           0           0           0              0

    Secured/unsecured loan(s)
 34 Long term loan                                                 0

      Cash Reserve Movement                                        0             0           0           0           0           0           0           0           0              0           0           0           0           0           0           0           0           0           0           0           0              0

 35 College Contribution                                           0             0           0           0           0           0           0           0           0              0           0           0           0           0           0           0           0           0           0           0           0              0

      Total Financing (Cash)                                       0             0           0           0           0           0           0           0           0              0           0           0           0           0           0           0           0           0           0           0           0              0




                                                                                                                                                                                                                                                                                    528aaf27-8be8-48e2-8450-1219515477ea.xls
           2/3/2011                                                                                                                                                 5 of 9                                                                                                                                           INPUT
                                                                  Year ending 31 July
13                                                                   2007        2008       2009       2010       2011       2012       2013       2014        2015          2016       2017       2018       2019       2020       2021       2022       2023       2024        2025       2026            2027
                                                     Total           YR0         YR1        YR2        YR3        YR4        YR5        YR6        YR7             YR8       YR9        YR10       YR11       YR12       YR13       YR14       YR15       YR16       YR17        YR18       YR19            YR20
                                                     £000            £000        £000       £000       £000       £000       £000       £000       £000        £000          £000       £000       £000       £000       £000       £000       £000       £000       £000        £000       £000            £000

SECTION 4: INCOME
                                                                  Year ending 31 July
     Note: These should be cumulative figures                        2007        2008       2009       2010       2011       2012       2013       2014        2015          2016       2017       2018       2019       2020       2021       2022       2023       2024        2025       2026            2027
     LSC FE Funding                                                  YR0          YR1       YR2        YR3        YR4        YR5        YR6        YR7         YR8           YR9        YR10       YR11       YR12       YR13       YR14       YR15       YR16       YR17        YR18       YR19            YR20
36   Planned growth FTEs                                                                                                                       0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
37   Average funding rate                       £                                                                                              0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
38   Funding                                 £'000                         0           0         0          0          0          0            0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
39   Other Income                                                       £000        £000      £000       £000       £000       £000     £000       £000        £000          £000       £000       £000       £000       £000       £000       £000       £000       £000        £000       £000            £000
     eg Apprenticeships                                                                                                                        0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
     eg Fees                                                                                                                                   0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
     eg Train to Gain                                                                                                                          0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
     eg Higher Education                                                                                                                       0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
                                                                                                                                               0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
     Total Other income                                                     0           0          0          0          0          0          0          0              0          0          0          0          0          0          0          0          0          0           0          0               0

SECTION 5: STAFF COSTS
40 Additional teaching posts                                                                                                                   0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
41 Costs per post £000                                                                                                                         0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
   Additional teaching costs £000                                           0           0          0          0          0          0          0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
42 Additional non-teaching posts                                                                                                               0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
43 Costs per post £000                                                                                                                         0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
   Additional non-teaching costs £000                                       0           0          0          0          0          0          0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
   Total staff costs £000                                                   0           0          0          0          0          0          0          0              0          0          0          0          0          0          0          0          0          0           0          0               0

SECTION 6: PREMISES COSTS
                                                                        £000        £000      £000       £000       £000       £000     £000       £000        £000          £000       £000       £000       £000       £000       £000       £000       £000       £000        £000       £000            £000
44   Project operating costs                                                                                                                   0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
45   Project operating savings                                                                                                                 0          0              0          0          0          0          0          0          0          0          0          0           0          0               0
46   Planned maintenance costs
47   Renewal/refurbishment costs

48 Cost of temporary accommodation (during construction)
49 Other one off costs (during construction)
50 One off savings (during construction)
   Total premises costs                                                     0           0          0          0          0          0          0          0              0          0          0          0          0          0          0          0          0          0           0          0               0

SECTION 7: OTHER COSTS
   Non-pay costs directly associated
51 with teaching of additional students £000                                                                                                   0          0              0          0          0          0          0          0          0          0          0          0           0          0               0

                                                                     YR0         YR1        YR2        YR3        YR4        YR5        YR6        YR7         YR8           YR9        YR10       YR11       YR12       YR13       YR14       YR15       YR16       YR17        YR18       YR19            YR20
                                                     £000               £000        £000       £000       £000       £000       £000    £000       £000        £000          £000       £000       £000       £000       £000       £000       £000       £000       £000        £000       £000            £000
     Total Costs                                                           0           0          0          0          0          0          0          0               0         0          0          0          0          0          0          0          0          0           0          0                0
     Total Benefits                                                        0           0          0          0          0          0          0          0               0         0          0          0          0          0          0          0          0          0           0          0                0
     Net Benefit/(Cost)                                                    0           0          0          0          0          0          0          0               0         0          0          0          0          0          0          0          0          0           0          0                0
     Discount Factor @3.5%                                           1.00000     0.96618    0.93351    0.90194    0.87144    0.84197    0.81350    0.78599         0.75941   0.73373    0.70892    0.68495    0.66178    0.63940    0.61778    0.59689    0.57671    0.55720     0.53836    0.52016          0.50257
     Net Present Value/(Cost)                                £0            0           0          0          0          0          0          0          0               0         0          0          0          0          0          0          0          0          0           0          0                0




                                                                                                                                                                                                                                                                 528aaf27-8be8-48e2-8450-1219515477ea.xls
          2/3/2011                                                                                                                                        6 of 9                                                                                                                                  INPUT
College & Project : -
SENSITIVITY ANALYSIS
                                         YR0       YR1       YR2       YR3       YR4       YR5       YR6        YR7             YR8        YR9        YR10       YR11       YR12       YR13       YR14       YR15       YR16         YR17        YR18       YR19        YR20
                             £000          £000      £000      £000      £000      £000      £000    £000       £000            £000       £000       £000       £000       £000       £000       £000       £000       £000         £000        £000       £000        £000

Capital Costs Increase       5%
Total Costs                                    0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Total Benefits                                 0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Net Benefit/(Cost)                             0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Discount Factor @3.5%                    1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350    0.78599         0.75941    0.73373    0.70892    0.68495    0.66178    0.63940    0.61778    0.59689    0.57671       0.55720    0.53836     0.52016     0.50257
Net Present Value/(Cost)            £0         0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0


Capital Costs Increase       10%
Total Costs                                    0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Total Benefits                                 0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Net Benefit/(Cost)                             0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Discount Factor @3.5%                    1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350    0.78599         0.75941    0.73373    0.70892    0.68495    0.66178    0.63940    0.61778    0.59689    0.57671       0.55720    0.53836     0.52016     0.50257
Net Present Value/(Cost)            £0         0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0


Capital Costs Increase       15%
Total Costs                                    0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Total Benefits                                 0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Net Benefit/(Cost)                             0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Discount Factor @3.5%                    1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350    0.78599         0.75941    0.73373    0.70892    0.68495    0.66178    0.63940    0.61778    0.59689    0.57671       0.55720    0.53836     0.52016     0.50257
Net Present Value/(Cost)            £0         0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0


Capital Costs Increase       20%
Total Costs                                    0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Total Benefits                                 0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Net Benefit/(Cost)                             0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Discount Factor @3.5%                    1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350    0.78599         0.75941    0.73373    0.70892    0.68495    0.66178    0.63940    0.61778    0.59689    0.57671       0.55720    0.53836     0.52016     0.50257
Net Present Value/(Cost)            £0         0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0


Disposal Receipts Decrease   5%
Total Costs                                    0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Total Benefits                                 0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Net Benefit/(Cost)                             0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Discount Factor @3.5%                    1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350    0.78599         0.75941    0.73373    0.70892    0.68495    0.66178    0.63940    0.61778    0.59689    0.57671       0.55720    0.53836     0.52016     0.50257
Net Present Value/(Cost)            £0         0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0


Disposal Receipts Decrease   10%
Total Costs                                    0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Total Benefits                                 0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Net Benefit/(Cost)                             0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Discount Factor @3.5%                    1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350    0.78599         0.75941    0.73373    0.70892    0.68495    0.66178    0.63940    0.61778    0.59689    0.57671       0.55720    0.53836     0.52016     0.50257
Net Present Value/(Cost)            £0         0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0


Disposal Receipts Decrease   15%
Total Costs                                    0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Total Benefits                                 0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Net Benefit/(Cost)                             0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Discount Factor @3.5%                    1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350    0.78599         0.75941    0.73373    0.70892    0.68495    0.66178    0.63940    0.61778    0.59689    0.57671       0.55720    0.53836     0.52016     0.50257
Net Present Value/(Cost)            £0         0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0


Disposal Receipts Decrease   20%
Total Costs                                    0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Total Benefits                                 0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Net Benefit/(Cost)                             0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Discount Factor @3.5%                    1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350    0.78599         0.75941    0.73373    0.70892    0.68495    0.66178    0.63940    0.61778    0.59689    0.57671       0.55720    0.53836     0.52016     0.50257
Net Present Value/(Cost)            £0         0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0


FE Funding Decrease          5%
Total Costs                                    0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Total Benefits                                 0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Net Benefit/(Cost)                             0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0
Discount Factor @3.5%                    1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350    0.78599         0.75941    0.73373    0.70892    0.68495    0.66178    0.63940    0.61778    0.59689    0.57671       0.55720    0.53836     0.52016     0.50257
Net Present Value/(Cost)            £0         0         0         0         0         0         0         0          0               0          0          0          0          0          0          0          0          0             0          0           0           0


FE Funding Decrease          10%
Total Costs                                   0         0         0         0         0         0           0           0              0          0          0          0          0          0          0          0          0            0           0          0           0



                                                                                                                                                                                                                                   528aaf27-8be8-48e2-8450-1219515477ea.xls
2/3/2011                                                                                                               7 of 9                                                                                                                                SENSITIVITIES
SENSITIVITY ANALYSIS
                                       YR0       YR1       YR2       YR3       YR4       YR5       YR6       YR7             YR8       YR9       YR10      YR11      YR12      YR13      YR14      YR15      YR16        YR17        YR18       YR19        YR20
                           £000           £000      £000      £000      £000      £000      £000   £000      £000            £000      £000      £000      £000      £000      £000      £000      £000      £000        £000        £000       £000        £000
Total Benefits                               0         0         0         0         0         0         0         0               0         0         0         0         0         0         0         0         0            0          0           0           0
Net Benefit/(Cost)                           0         0         0         0         0         0         0         0               0         0         0         0         0         0         0         0         0            0          0           0           0
Discount Factor @3.5%                  1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350   0.78599         0.75941   0.73373   0.70892   0.68495   0.66178   0.63940   0.61778   0.59689   0.57671      0.55720    0.53836     0.52016     0.50257
Net Present Value/(Cost)          £0         0         0         0         0         0         0         0         0               0         0         0         0         0         0         0         0         0            0          0           0           0


FE Funding Decrease        15%
Total Costs                                  0         0         0         0         0         0         0         0               0         0         0         0         0         0         0         0         0            0          0           0           0
Total Benefits                               0         0         0         0         0         0         0         0               0         0         0         0         0         0         0         0         0            0          0           0           0
Net Benefit/(Cost)                           0         0         0         0         0         0         0         0               0         0         0         0         0         0         0         0         0            0          0           0           0
Discount Factor @3.5%                  1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350   0.78599         0.75941   0.73373   0.70892   0.68495   0.66178   0.63940   0.61778   0.59689   0.57671      0.55720    0.53836     0.52016     0.50257
Net Present Value/(Cost)          £0         0         0         0         0         0         0         0         0               0         0         0         0         0         0         0         0         0            0          0           0           0


FE Funding Decrease        20%
Total Costs                                  0         0         0         0         0         0         0         0               0         0         0         0         0         0         0         0         0            0          0           0           0
Total Benefits                               0         0         0         0         0         0         0         0               0         0         0         0         0         0         0         0         0            0          0           0           0
Net Benefit/(Cost)                           0         0         0         0         0         0         0         0               0         0         0         0         0         0         0         0         0            0          0           0           0
Discount Factor @3.5%                  1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350   0.78599         0.75941   0.73373   0.70892   0.68495   0.66178   0.63940   0.61778   0.59689   0.57671      0.55720    0.53836     0.52016     0.50257
Net Present Value/(Cost)          £0         0         0         0         0         0         0         0         0               0         0         0         0         0         0         0         0         0            0          0           0           0




                                                                                                                                                                                                                       528aaf27-8be8-48e2-8450-1219515477ea.xls
2/3/2011                                                                                                            8 of 9                                                                                                                       SENSITIVITIES
College & Project : -
MULTI SENSITIVITY ANALYSIS
                                                 YR0       YR1       YR2       YR3       YR4       YR5       YR6       YR7         YR8       YR9       YR10      YR11      YR12      YR13      YR14      YR15      YR16         YR17        YR18       YR19        YR20
                                    % change       £000      £000      £000      £000      £000      £000    £000      £000        £000      £000      £000      £000      £000      £000      £000      £000      £000         £000        £000       £000        £000

Capital Costs Increase                10%
Disposal Receipts Decrease            10%
FE Funding Income Decrease            10%
Other Income Decrease                 10%
Staff Costs Increase                  10%
Premises Costs Increase               10%
Total Costs                                            0         0         0         0         0         0         0         0           0         0         0         0         0         0         0         0         0             0          0           0          0
Total Benefits                                         0         0         0         0         0         0         0         0           0         0         0         0         0         0         0         0         0             0          0           0          0
Net Benefit/(Cost)                                     0         0         0         0         0         0         0         0           0         0         0         0         0         0         0         0         0             0          0           0          0
Discount Factor @3.5%                            1.00000   0.96618   0.93351   0.90194   0.87144   0.84197   0.81350   0.78599     0.75941   0.73373   0.70892   0.68495   0.66178   0.63940   0.61778   0.59689   0.57671       0.55720    0.53836     0.52016    0.50257
Net Present Value/(Cost)     £000           £0         0         0         0         0         0         0         0         0           0         0         0         0         0         0         0         0         0             0          0           0          0




                                                                                                                                                                                                                             528aaf27-8be8-48e2-8450-1219515477ea.xls
 2/3/2011                                                                                                                 9 of 9                                                                                                                   MULTI SENSITIVITY

								
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