Things to Consider when using Financial Analysis Tools

 

  • How long buildings are discounted for? How long renovations are discounted?
  • Future costs must be discounted to present value to account for the time-value of money
  • Use the same assumptions for all calculations for each product, material or equipment:
    • Utility rates
    • Replacement periods
    • Inflation/discount rate
    • Expected loads
    • Expected Building life (in years)
    • Maintenance fees
    • Who will makes the final decision after analysis is complete?