The Finance Tab is where you’ll choose how to consider paying for your project and the techno-economic optimization. Your choice will affect how cashflows are considered for the lifetime of the project.
There are two main ways of considering project financing. Project screening and Detailed financial analysis.
Project screening considers taking out individual loans for each considered piece of equipment with the loan term equal to the lifetime of the equipment. When the equipment is replaced, another loan is taken out.
In order to complete a Project screening financial analysis you’ll need to provide the expected interest rate of the loan, the project lifetime, and the required payback period. If you don’t have a hard constraint for a payback period we recommend leaving the value set to 0 years.
For a Detailed financial analysis you can choose to self finance the project in which we assume that you pay for the entire project CAPEX as an upfront lump sum, or you can choose to loan finance the project, in which you take out a loan for the entire project.
For each of these options we also ask you to choose a reinvestment strategy. You can choose either Lump sum, in which equipment is replaced at the end of its life with a lump sum payment, or Accrued, in which negative cashflows are accrued each year in order to save up for replacement equipment.