Examples of Threshold Equity IRR in a sentence
Threshold Equity IRR This is the nominal post tax (i.e. post tax with respect to the SPV, pre-tax with respect to the shareholders in the SPV) Equity IRR set out in the Base Case, which excludes the effects of any anticipated refinancing.
If this is not the case a calculation should be carried out to find the notional amount which, if received by investors as at the Refinancing date, would increase the Pre-Refinancing Equity IRR to the Threshold Equity IRR.
The Threshold Equity IRR (Internal Rate of Return on equity invested) figure above which super-profits are shared was negotiated to 22.5%.The proposed framework for VFM exhibits clearly how economy, efficiency and effectiveness apply in road PFI projects as shown in Fig.4.Minimize the cost of resources acquired (condition:appropriate quality)It concerns the cost of the inputs to the activities of a PFI road project and the resources needed to deliver the service.
In this example, only 54.50 is subject to sharing which represents that portion of the cash flow that results in an Actual Equity IRR above the 1st Threshold Equity IRR.
The discount rate used to calculate the present value of the remaining Distributions in each case is the Threshold Equity IRR.