Info Report Check
Submission incomplete:
The DOE is requested to include information on how it has validated the input values to the financial calculations as per VVM v 1.2 paragraph 114 (a).
Issues:
(i) It is observed in the IRR spreadsheet that the Interests (short term) are calculated in the "Total Costs" sheet as Short loan for liquid capital % multiplied by Short loan interest %. Please clarify the correctness of this formulae.
(ii) There is an inconsistency between the residual value validated (validation report, page 17) and the IRR spreadsheet. The DOE has explained in the Validation Report that the residual value of the project activity assets is determined as zero whereas the IRR spreadsheet uses a residual value of 5%.