1.25 The Equity IRR value shows the rate of return on investment that providers of equity capital would earn under the PFI Option. The relevant IRR Switch enables Procuring Authorities to complete some limited sensitivity analysis. When a particular IRR Switch is activated by clicking on it, the Unitary Charge is adjusted such that the Pre Tax Target IRR is achieved. Since tax specific cashflows are not included in the Spreadsheet, Procuring Authorities should use a Target Equity IRR which corresponds to the pre-tax equity IRR evidenced in previous project models inclusive of tax. This will ensure that the Unitary Charge in the Spreadsheet is computed on a post tax basis.
1.26 Once a switch is run the results can be saved in the Output sheet by pressing the "Stash Output" switch. Alternatively the whole output sheet can be saved as a new spreadsheet in the same workbook by simply pressing the "Copy Output Sheet" switch, and a detailed record of the outputs under different scenarios maintained.