There are 20 lines devoted to miscellaneous Project Income. Do NOT use Project Income for the rental income that is to be capitalised.
Project Income can be any form of income received during the course of the development, or afterwards. Examples of Project Income are: advertising revenue, government grant and rents before or during the development period. You could use it for income prior to sale although the Advance Income facility is better suited for this task.
As the title ‘Project Income’ is somewhat meaningless you will probably wish to provide your own titles to suit the context of your appraisal. Therefore if ‘Project Income’ would be better named ‘Advertising Hoarding’ or similar you can re-title it as required.
Project Income can be entered either as a total amount or an annual income. By default Project Income is treated as a total amount, this is indicated by the suffix letter ‘a’. If you wish to enter Project Income as an annual income then use the letter ‘r’ in place of the Enter key when inputting your figure. If you typed ‘25000r’ then this will set the value to £25,000 per annum indicated by the suffix letter ‘r’. To change this back to a total amount then re-enter your figure using the letter ‘a’ in place of the Enter key.
Once your value has been provided either as an annual income or amount then any subsequent changes will remember the last setting used (total or income) unless you use ‘a’ or ‘r’ in place of the Enter key as described above. If you delete the value then it will be reset to the default of total amount.
Note: If entered as an annual amount, the total value for Project Income is determined by its timescale (which is provided in either the Time/Finance or Detailed Timing sections). For example if a project income line is entered as £25,000 per annum and its timescale is set to a length of 18 months then the total value will be £37,500 (25000 divided by 12 months over 18 months).
Project Income as a total amount is also useful for dealing with negative land values as it will show the level of cash injection required for uneconomic projects to attain a minimum profit target.