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Comparing the MMF-based ROI with the Classic ROI

Clearly, the impact of using incremental delivery of MMFs in this example transforms the project. It costs just a little more to undertake the project, but the impact in terms of overall revenue, five-year ROI, and the IRR is attractive. The revenue over five years is higher primarily because it starts earlier. However, for the purposes of this simplified analysis we have assumed nothing about changes in marketability over the five years. With an IRR of ~36%, this now appears to be an excellent way to deploy the investment capital over five years.

The self-funding time is particularly significant. Now we have a project that is self-sufficient in cash terms as early as year 3. We will expand on this idea of self-funding development projects in later sections.

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