ICM · Research & Decision Studio · capital-studio · Model 1.1.2 · Illustrative inputs
Project finance
Capital studio
Find the cash-flow structure that survives a hurdle rate and debt-service stress.
Capital / resilienceIllustrative composition
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ICM · Capital studio · Model 1.1.2 · Default illustrative record
Default illustrative result
Cash flows exceed the 10% hurdle on an NPV basis for the canonical decimal inputs. The lowest supplied coverage is 1.55×, falling to 1.24× under the CFADS stress. First undiscounted cumulative recovery occurs at 4.62 years; later negative flows may reverse it.
| Metric | Value | Unit | Calculation boundary |
|---|---|---|---|
| Net present value | 33.68410324926076 | USDm | Initial cash flow is at period zero. Exact sign: positive. The headline is rounded; exact fraction and signed decimal are retained in the JSON export. |
| Admissible IRRs | 13.8692% | 1 distinct positive discount-factor root certified; 1 finite rate represented. Exact isolation intervals and complete fractional rates are retained in the JSON export; colliding display labels expand to their full represented percentage. | |
| Minimum DSCR | 1.5476190476190477 | × | Periods with no debt service are excluded. |
| Downside NPV | -21.052717400591394 | USDm | Future net flows reduced by 20% of their absolute value. |
| Period | Label | Net cash flowUSDm | Present valueUSDm | CFADSUSDm | Debt serviceUSDm | DSCR× | Undiscounted cumulativeUSDm |
|---|---|---|---|---|---|---|---|
| 0 | Initial investment | -240 | -240 | 0 | 0 | Unavailable | -240 |
| 1 | Year 1 | 52 | 47.272727272727266 | 65 | 42 | 1.5476190476190477 | -188 |
| 2 | Year 2 | 52 | 42.97520661157024 | 65 | 42 | 1.5476190476190477 | -136 |
| 3 | Year 3 | 52 | 39.06836964688203 | 65 | 42 | 1.5476190476190477 | -84 |
| 4 | Year 4 | 52 | 35.51669967898366 | 65 | 42 | 1.5476190476190477 | -32 |
| 5 | Year 5 | 52 | 32.28790879907606 | 65 | 42 | 1.5476190476190477 | 20 |
| 6 | Year 6 | 52 | 29.35264436279641 | 65 | 42 | 1.5476190476190477 | 72 |
| 7 | Year 7 | 92 | 47.21054687722499 | 80 | 0 | Unavailable | 164 |
| Discount rate% | Base NPVUSDm | Downside NPVUSDm |
|---|---|---|
| -25 | 1409.9021490626428 | 1079.9217192501144 |
| -10 | 410.8208855211062 | 280.656708416885 |
| 0 | 164 | 83.2 |
| 5 | 89.31866986987843 | 23.454935895902743 |
| 7.5 | 59.533464746716405 | -0.37322820262687817 |
| 10 | 33.68410324926076 | -21.052717400591394 |
| 12.5 | 11.138142856455897 | -39.089485714835284 |
| 13.8692493200064 | -1.1579446407531266e-14 | -48.00000000000001 |
| 15 | -8.620692243081676 | -54.89655379446534 |
| 20 | -41.39796239140375 | -81.118369913123 |
| 25 | -67.2321536 | -101.78572288 |
| 30 | -87.91550882389778 | -118.33240705911822 |
| 40 | -118.53780555477978 | -142.83024444382383 |
| 60 | -155.07180213928223 | -172.05744171142578 |
| 80 | -175.40834991822024 | -188.3266799345762 |
| 100 | -188.09375 | -198.475 |
| IRR% | NPV at rootUSDm | Relative residual | Root certificate |
|---|---|---|---|
| 13.8692 | 5.684341886080802e-14 | 1.77635683940025e-16 | Certified root; residual is a floating diagnostic |
Inputs behind this result
| Assumption and unit | Exact supplied value |
|---|---|
| Discount rate (% per year) | 10 |
| Period label | Net cash flowUSDm | CFADSUSDm | Debt serviceUSDm |
|---|---|---|---|
| Initial investment | -240 | 0 | 0 |
| Year 1 | 52 | 65 | 42 |
| Year 2 | 52 | 65 | 42 |
| Year 3 | 52 | 65 | 42 |
| Year 4 | 52 | 65 | 42 |
| Year 5 | 52 | 65 | 42 |
| Year 6 | 52 | 65 | 42 |
| Year 7 | 92 | 80 | 0 |
Transparent method
- NPV = sum of cash flow at t divided by (1 + r)^t, with initial cash at t = 0.
- NPV sign is evaluated as an exact rational from the canonical decimal representation of the validated JSON numbers. The JSON export retains the exact fraction and a rounded forty-significant-digit decimal; charts use its Number approximation.
- IRRs are the distinct positive roots of the exact canonical-decimal cash-flow polynomial in x = 1 / (1 + r). Square-free reduction and a BigInt Sturm chain certify the count; rational intervals isolate each root before nearest-even Number rate conversion.
- DSCR = CFADS / debt service for periods with positive debt service.
- Sensitivity holds every cash flow constant while moving the discount rate; the operating stress changes future cash flows and CFADS by 20%. First undiscounted recovery uses exact canonical decimal cumulative cash balances and within-period interpolation. Later deficits do not erase the first recovery.
Limits
- Annual equal spacing. Cash flow, CFADS and debt service are independent supplied series. No tax, inflation, debt sculpting or dated cash-flow engine.
- Several or no IRRs may exist. NPV remains the preference criterion at the supplied hurdle rate.
- Repeated roots are counted once. Exact isolation intervals and root counts are retained. If distinct roots round to the same Number, a rate is not finite above −100%, or the bounded refinement budget is exhausted, affected rates are explicitly unavailable; they are never reported as absent roots.
- Numerical input precision: use zero or absolute values of at least 0.000000001. Smaller nonzero inputs are rejected explicitly.
- Exact NPV sign and IRR count/isolation apply to canonical decimal numbers after JSON parsing, not to unrecorded extra digits. Equal annual spacing and supplied inputs remain assumptions. IRR headline rates, residual diagnostics, present-value rows, stress construction and chart coordinates use Number approximations. Cumulative cash amounts and fractional recovery times are converted to Number approximations after the first crossing is determined.