Prodev Development
Appraisal Program

Description

Prodev is really simple to use: 

• You enter costs and revenue. 
• You then enter  timescales and interest.
• You then view the appraisal and cashflow results so far. 

Once that is done you can: 

• Amend values and results immediately. 
• Print or export the appraisal and cashflow. 
• Target values (eg Site Value) using the Residual functions. 
• Produce best and worst case scenarios using the Sensitivity facility. 
• Fine tine Cashflow timescales using the Cashflow and Phasing facilities. 

More detailed information is set out below and on the Sample Reports pages. Note: Click on the screen images if you wish to enlarge them in separate window.

The principal feature of Prodev is that it combines the role of development appraisal and project cashflow within one program. Every time the appraisal is changed, the cashflow is updated, and vice versa. The appraisal report is set out in a classic format so as to be clear and understandable . The cashflow reflects the exact timing of the appraisal transactions and calculates interest on a monthly or quarterly basis and sends the interest result back to the appraisal. A feature of our earlier programs was the ability to create appraisals very quickly then calculate residual values, sensitivities and so forth. This ease of use has been preserved despite the addition of a cashflow. Prodev contains the following components that build up the Appraisal and Cashflow: 

Appraisal Entry (Data List) 

This is where most of the appraisal information is entered. The Data List is the central part of Prodev and principally deals with the initial entry and amendment of all the Revenue and Expenditure information (Eg Rents, Yields, Land, Construction, Fees and so forth). Once the appraisal information has been keyed in, it is where Residual, Sensitivity, Viewing, Printing and other program functions are performed. The Data List contains 980 separate items, but in most cases only a small proportion of these will be used. This list of information, whilst large is easy to manipulate as it has been divided into 12 distinct categories that can be easily located. Prodev will omit unused items from the actual appraisal/cashflow output so that the resulting appraisal and cashflow report is clear and concise.

The results of an active appraisal calculation are always shown in the top right hand corner of the screen and these dynamically update whenever a change is made to an appraisal input value. The purpose of using a list in this way is so that any item, or group of items can be used as the basis of a residual or sensitivity calculation. Most of the titles shown above are intended to be edited to suit the context of the appraisal. For instance in the Data List above the first two 'Initial Payment' line have been re-titled as 'Planning' and 'Survey'. Any entry shown all or partly in lower case characters can be treated in this way. Prodev also provides a Template option which allows frequently used titles and values to be re-used as the basis for any new appraisal. 

Overall Timescales and Interest 

In order to obtain a 'feel' for the timing at first, Prodev only needs simple timescale information in order to build the cashflow, for instance Lead-in, Construction and Sale periods. There are separate timescales for all the major elements within an appraisal and these can be overlapped if required (Eg Residential Sales that start before completion of Build.).

Timescales can now be subdivided into individual phases to cater for projects where there are multiple building and sales periods. Interest Rates are provided overall or periodically and allow for different compounding methods plus Equity. The Timescales are used by Prodev to build a 'cashflow image' for every item in each month (or quarter) throughout the term of the project.

Detailed Timing

This is similar to entering overall timescales in the Time/Finance section except that it provides timescales for each individual cost and sale item in your appraisal rather than just timescales for the overall headings. 

Initially the timescales will be set up using the default timescales in the Time/Finance section. You can also enter a standard overall debt interest rate here.

Cashflow Timing

For even more detailed, the Cashflow Image can precisely dictate where individual items of income and expenditure occur.

Initially it is based upon the timescales entered in the Finance Section, however where total values need to be separately scheduled they can either be individually re-timed or alternatively set to manual and entered directly into the cashflow. This allows any item of Revenue or Cost to be placed anywhere within the project timescale and is useful for items that fall outside normal timing considerations. 

Cashflow Graph 

The Cashflow Graph is an extension to the Cashflow Image that allows the total value for any Revenue or Cost item to be subdivided into its monthly (or quarterly) components simply by creating a bar graph to represent the profile of the cashflow. The total value will then be subdivided into individual periodic values according to the profile and relative heights of the individual bars within the chart. The creation of these profiles is both mouse and keyboard driven. This method provides a quick and easy method of dealing with matters such as building cost S-Curves (as shown here) and site deposits.

Combining the 3 key elements 

Once the information has been entered Prodev calculates the appraisal in the following order. Firstly the Appraisal totals are worked out, then each relevant total is subdivided into its monthly (or quarterly) sub-totals based on how the Finance and Cashflow Sections have been set up. This provides exact cashflow balances for interest calculation purposes. The cashflow element is therefore right at the core of the appraisal calculation, not an afterthought or an add-on. 

Residual Calculations 

Prodev updates totals and the appraisal statistics every time a value is changed. The residual calculation does this in reverse and obtains the appropriate input value for a given profit target. Typically this is used to assess Site Value but in Prodev any item in the Data List or any combination of items (eg a range of building costs) can be targeted. Prodev can solve to Profit on Cost, Profit on Sale or IRR. 

Sensitivity Analysis 

These reports accompany an appraisal and set out the effect of a change in appraisal values. As its simplest level one item can be selected (eg Rent) and varied by amount on an ascending, descending or median basis to show a residual value or profit. Alternatively items can be placed on a 'Y' and 'X' axis and shown two-dimensionally (as shown here). The value of any item in the Data List or any combination of items (eg a range of rents) can be used in such reports. Sensitivity reports can show both Profit Levels and Residual Values. 

Excel and Word Links 

Prodev's direct links with Microsoft Excel and Word provide both the means to export the Appraisal and Cashflow for inclusion in a report or, at a far simpler level, the ability to preview and print a project directly with the same ease as if using Prodev's own internal print functions. No prior knowledge of Excel or Word is required. 

On-Line Help 

Prodev comes with a fully featured context sensitive on-line help system. Prodev is also supplied with a printed manual.