Key Figures

The Project, Equity and Payout IRRs are calculated using following function, with the only difference being that the Reference is adjusted for the different IRR levels. Also, it is important to note that the calculations are based on monthly cashflows as opposed to quarterly or yearly. 

The Equity and Payout cashflows used as reference can be easily derived from the Fimo. They each have a different line indicating the respective cashflows. The project IRR is based on adjusted free cashflows, which is calculated by subtracting the tax shield from the free cashflow. which is also an individual line in the Fimo. The Tax Shield itself is calculated as follows:

1. The tax payments are calculated on EBIT. This by multiplying the tax rate times EBIT and adding the reduction in taxes paid due to Deferred Tax Assets
2. The tax payments are calculated on EBT by multiplying the tax rates by EBT and adding the reduction in taxes paid due to Deferred Tax Assets
3. The taxes paid on EBT (see 2) are subtracted from the taxes paid on EBIT (see 1). The resulting value is the tax shield for the respective month.   

t=0: Valuation Date

t=T: Project end