Setups: The Simplest ProCash© Formats
There are two "setup" shells. The first only shows financing structure while the second shows financing structure as well as return on investment for the "pro forma" year for each financial participant. The first, the "financing setup" (or SETUPA) is an essential part of every ProCash© run. The second, the "feasibility setup" (or SETUP) is not part of year-by-year projections since its "pro forma" year may not match any year of the year-by-year projection.
The simplest ProCash© shell, called SETUPA, shows total cost and senior financing structure. It does not show Return on Equity or the positions of the specific entities involved in the financial structure.
In the case of projects where rent is cost based and not an input, the format "Derivation of Rent by FHA Formula" is helpful in understanding how rent was derived. It can be produced in use of the simplest ProCash© shell, called SETUPA. While this feature was developed for housing projects, it can be used for commercial projects to determine the rent needed to support the costs and expenses that have been entered.
The second ProCash© shell, called SETUP, is the first format that reveals return on investment for each of the financial participants. It produces a financial feasibility setup as a mortgage banker would produce.
The key measures report for the third and fourth ProCash© shells includes present value, internal rate of return (IROR), and financial management rate of return (FMRR) for each participant in the financial structure of the project.
The table above is shown on the screen at the end of a ProCash© run in the third or fourth shells. It can also be produced as a printed report.
For multiple use projects or phased projects, it may be desirable to present this information for each phase in a single table. The report on the next page (Schedule C) permits these key evaluative measures to be presented for all phases in a single table.