integrates investment and commercial viability calculations into project and product costings
Investment and viability calculations performed in FACTON EPC enable businesses to take decisions based on relevant and reliable figures. With FACTON EPC, companies are in a position to examine the effect of individual parameters on costs and profitability.
Based on investment and commercial viability calculations, projects can be properly evaluated. In addition, strategic decisions in relation to costs, such as the choice of the most suitable production method, and make-or-buy decisions can be taken at an early stage. FACTON EPC assists companies in the evaluation of the commercial viability of a product or project, answering key questions such as "Should we accept the order?" or "Should we invest in new machinery?"
Financial key indicators for decision-makers
The integrated viability calculation tool provides a number of financial key indicators that adequately reflect the commercial profitability of an undertaking. With FACTON EPC, companies are able to make real-time decisions based on such key indicators, for example, during price and payment term negotiations with customers. They are in a position to accurately assess their cash flow, to simulate and analyse risks such as market price fluctuations, and to respond to global changes or dynamic factors (e.g. relocation of production).
Commercial viability calculations return the following key values:
Net present value (NPV)
Internal return on investment
Pay-off period (PoP) – static and dynamic
Break-even quantity (BEQ)
Break-even turnover (BET)
Return on investment (RoI)
Real and comprehensive lifetime costing
In FACTON EPC, product and project costs are calculated across the entire product life cycle. Users have the option to separately define the investment and the production periods. Relevant costing parameters such as tariffs, quantities, sales prices, investment costs, other costs, reimbursements, cycle times, overheads, etc. are taken into account on an annual basis.