MyProject® helps determine the financial
viability of investment projects by analysing their cash flows. The package allows:
flexible entry of actual or hypothetical project data over any number of years
projects to produce any number of products, each product with its own production, price and cost profiles
any number of different types of capital investments in the project, each investment subject to its own tax
treatment (eg income tax depreciation, capital gains taxation, accruals treatment)
imposition of differing levels of price or cost inflation on projects
re-runs with specified changes in product prices, cost inflation, income tax rate or profit royalty
rate until required return is achieved
a wide range of different ways of imposing income taxation and capital gains taxation
and additional royalties (including cash flow taxes) on projects
analysis of projects by the direct investor (regardless of whether the investor is, say, a sole trader, company or
trust) or by someone leasing the project to another (with analysis undertaken from the perspective of
both the lessor and lessee).
MyProject is primarily designed to determine the internal rate of return and net present value (NPV) of investment
projects and provide associated cash flow details over the lives of the projects. MyProject also provides
year-by-year snapshots of each project showing profit and loss statement,
balance sheet and cash flow and tax statements.
The user gets a feel for the
financial viability of projects by comparing their returns to the returns available from financial markets,
either before or after tax and royalties. An understanding of the effect of tax and royalties is obtained by
comparing the return and NPV of projects before and after taxes and royalties.
By entering sector-wide or economy-wide data as project data and changing tax treatment over the duration of the
'project', MyProject may be used to simulate sector- or economy-wide tax revenue effects of changes in tax treatment.
MyProject is written in Microsoft® Visual Basic.Net®. The package incorporates a quick start guide and an electronic
to assist in the use of the package; to explain and discuss internal rates of return and NPVs;
to suggest how MyProject may be used to test which income tax and cash flow royalty arrangements
have least effect on investment decision-making; to discuss the analysis of leasing with MyProject;
to explain how data may be varied in 12 sample projects included with the package to broaden the scope of
these examples; and
to explain how 7 of these sample projects may be used to replicate many of the tables in Wayne Mayo's
2013 book, Taxing Resource Rent.
It also includes a theoretical paper on non-distortive income tax treatment of investments, numerical
illustrations from which are reflected in some of the sample projects included with My Project.
To get an idea of
the ease of use of MyProject and its results see sequence of use of MyProject with the hypothetical
mining/petroleum industry project included with MyProject.
Replication of tables in Taxing Resource Rent
MyProject 2.0 is a significant upgrade of MyProject 1.0, containing a broader suite of options relating to the
application of resource rent taxation to mining operations.
These extended options correspond to analyses included in Wayne Mayo's book Taxing Resource Rent: concepts, misconceptions and practical design,
enabling users of MyProject 2.0 to replicate the tables in that book. MyProject 2.0 facilitates that replication by providing
stored examples and accompanying guides dealing with issues like the following relating to cash flow royalties (the links
in the associated guides are not active):