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P3 Toolkit

Analytical Tools

P3-VALUE: Financial Assessment Tool User Manual

June 16, 2014

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Chapter 3 - Using the Tool

The Financial Assessment Tool contains two separate sections, one for completing a Value for Money Analysis and the other for conducting a Viability Assessment (also known as "Financial Feasibility Assessment" or "Affordability Assessment"). As outlined in Figure 2, both of those sections contain four major classes of worksheets that are color-coded by purpose:

Figure 2. Key Components of the Financial Assessment Tool

Function The green worksheets allow users to accept the Financial Assessment Tool's disclaimers, review key terms and definitions, and navigate through the tool via an 'Index' tab. It is important to note that users must accept the disclaimer on the 'Introduction' tab before accessing the remaining content of the tool.
Assumptions & Examples The blue worksheets provide the main inputs to both sections of the tool. Users may edit assumptions in blue-shaded cells and select inputs from available drop-down menus.
Cash Flows The gray worksheets present the project cash flows of the "Example Scenario" project based on the assumptions. Users cannot edit these sheets.
Outputs The yellow worksheets express the results for the analyses based on the user-defined assumptions.

The Financial Assessment Tool and User Manual provide information on a pre-populated "Example Scenario" to demonstrate the types of assumptions and analysis that may be needed to conduct a quantitative VfM analysis. It is important to note that the "Example Scenario" assumptions provided in the Financial Assessment Tool do not reflect any specific project and are not recommended values. Users should refer to the example assumptions and outputs only in developing their understanding of the VfM analysis process and not as a basis for evaluating a "real-world" project. Furthermore, users should refer to the Public Sector Comparator Tool User Manual and Shadow Bid Tool User Manual for information on the components of those tools and for a discussion of the key considerations when completing VfM steps in the financial assessment process.

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