# Commission Implementing Regulation (EU) 2015/207 of 20 January 2015 laying down detailed rules implementing Regulation (EU) No 1303/2013 of the European Parliament and of the Council as regards the models for the progress report, submission of the information on a major project, the joint action plan, the implementation reports for the Investment for growth and jobs goal, the management declaration, the audit strategy, the audit opinion and the annual control report and the methodology for carrying out the cost-benefit analysis and pursuant to Regulation (EU) No 1299/2013 of the European Parliament and of the Council as regards the model for the implementation reports for the European territorial cooperation goal, Division (a): Evaluation of financial profitability of the investment and national capital

Extent: E+W+S+N.I.

Financial Net Present Value (FNPV) is the sum that results when the expected investment and operating and replacement costs of the project (discounted) are deducted from the discounted value of the expected revenues.
Financial Rate of Return (FRR) is the discount rate that produces a zero FNPV.
The financial profitability of an investment is assessed by estimating the financial net present value and the financial rate of return of the investment (FNPV(C) and FRR(C)). These indicators compare investment costs to net revenues and measure the extent to which the project's net revenues are able to repay the investment, regardless of the sources of financing. In some cases (in the context of State Aid and private operators) the calculation of FRR(Kp) is required. Interest payments shall not be included in the calculation FNPV(C).

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Source: https://www.legislation.gov.uk/eur/2015/207/annex/III/division/2/division/2.2/division/2.2.2/division/a (the official version)
Page: https://openlegislation.uk/eu-regulation-2015-207/annex-III/division-2/division-2.2/division-2.2.2/division-a
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.