There are three financial reports in WEAP that users can access to view the results of a financial analysis. To access reports after a simulation, click on the Results View. Use the dropdown menu at the top of the screen to select the financial reports. There, the user can choose between the Net Cost, Net Present Value, and Average Cost of Water reports. Note that WEAP's costing calculations are all performed in real currency units (net of inflation), although results can be displayed in both real (constant) and discounted currency units.
Net Benefit Report
This report can be used to generate graphs or tables showing the net benefit (benefits minus costs) of financing and operating infrastructure in one or more scenarios. If both costs and benefits are selected for display, the sum of these is shown with costs assumed to be negative and benefits to be positive. For example, if benefits exceed costs, the resulting sum displayed in the graph or table will be positive. If results for all items are displayed, the values will account for the costs and/or benefits of all items and the system costs and/or benefits described in the "Entering System Costs and Benefits" section. Using the menus and checkbox arranged around the edge of the screen, the user can choose how the data are presented. The menu on the bottom of the screen determines the data type for the x-axis. Choices include model items, simulation years, scenarios, and cost/benefit types. The menus at the top and right side of the screen can be used to further adjust the information in the graph or table, including the currency uni, and whether they are real (constant) or discounted (using the system real discount rate)..
Net Present Value Report
This report represents the net present value of future expenditures for capital and operations costs, net of any benefits. The values presented in the report are the sums of the net present value calculation of the net costs for each of the future years modeled in the scenario. As an example, consider the Weaping River Basin area provided with WEAP and assume the current accounts year is 2010, the North Reservoir is built in 2015 for 100 million dollars, and the financing is for 30 years at a 4% real interest rate (net of inflation). The net present value is calculated as the present value of the annual loan payment of 5.7 million dollars for year 2015, plus the present value of the payments for the remaining years in the simulation (2017-2020). The net present value of future operations costs for North Reservoir is calculated using the same approach. Operations costs for the years 2015-2020 are discounted back to 2010 dollars on a year-by-year basis, using the system real discount rate; and the sum of the annual totals is presented in the report. Note that loan payments scheduled after the end of the simulation (for example, the remaining 24 years on the 30-year loan for North Reservoir) will not be included in the net present value calculation.
The menu at the bottom of the screen can be used to set the type of information to display on the x-axis of the graph. Options include: cost and benefit types, scenarios, and model items. The menus located at the top and right side of the screen can adjust the data presented on the graph further.
An example of the utility of the net present value report is illustrated through an analysis of the cost tradeoffs associated with effectively creating a new supply either through construction of a new reservoir or implementation of a new treatment technology at a demand node. This example was created by modifying the Weaping River Basin area provided with the WEAP software. In the Supply Measures scenario, the North Reservoir was given a capital cost of 100 million dollars financed over 30 years at a 4% real interest rate. Payments were to begin in 2015 -- this is also the year the reservoir began operation. A variable operations cost of $0.005 per cubic meter was also entered. In the Demand Measures scenario, a capital cost of 1 million dollars per year was entered for the Industry North demand node. An operations cost of $0.005 per cubic meter was also entered. The net present value of the capital and operations costs represent:
The discounted annual payments on the loan for North Reservoir for the years 2015 to 2020.
The discounted annual capital payments for the treatment technology at Industry North for years 2011-2020.
The discounted annual operations costs for the North Reservoir for year 2015 to 2020, and
The discounted annual operation costs for treatment technology at Industry North for 2011 to 2020.
Average Cost of Water Report
This report provides a calculation of the average cost of water in a given scenario. It is calculated by dividing the sum of the net cost associated with all model items and system costs by the total volume of water delivered to demand nodes. It can be used as another comparison between scenarios to determine relative benefits and costs. Similar to the net cost report, a negative value implies that benefits are larger than costs. Menus located around the screen can be used to select the months(s) and/or year(s) for which data will be displayed.