Techno-Economic / Financial Analysis
MSV International Inc.’s Techno-Economic analysis module facilitates the evaluation of the feasibility and the profitability of a project, based on the factual system model, leading to realistic planning in line with technical, service reliability, and financial objectives. Whether planning maintenance, replacements, improvements, or expansions to a system, the module is intended to help our clients and large industries invest into that infrastructure by analyzing the impacts of modifications made and the cost and gains they entail over the years.
- Economic settings such as the discount rate, the inflation rate, and the tax rate are applied on all costs to determine the present value of future cash flows
- Investment activities (i.e. the costs of the modifications) related to the corrective measures are compared to their economic revenues and gains
- Analysis can be performed on a calculation period that considers an estimated or forecasted global or detailed load growth
- Economic results include the Net Present Value (NPV), the Internal Rate of Return (IRR), the Return On Investment (ROI), the estimated payback period and estimated discounted payback period
- The return on investment is calculated taking into account objectives such as losses reduction, mitigations of abnormal conditions and, an option, the improvement in reliability
- Asset depreciation over the span of the analysis can be considered along with the possibility to consider the half-year rule and/or to include salvage value and tax