Download WLLA Executive Overview

OVERVIEW
WorthIT Lease & Loan Analyzer (WLLA) is specifically designed for accounting and
finance professionals who need more than just amortization schedules.
Unlike most traditional amortization calculators, WLLA allows users to incorporate
Depreciation costs; Taxes; Fees and Discount rates of Return to get a comprehensive perspective
on any Loan & Lease scenario.
It also includes imaginative Amortization, FV & NPV programs with simulation
capabilities making WLLA the indispensable must have program for accounting & finance
professionals. With the WLLA, you can:

Evaluate each scenario’s Net Cash Flow projections per fiscal period after accounting for
Depreciation, taxes and interest outflow.

Create detailed Net Advantage of Leasing reports incorporating operating expenses;
Lease outflows; Depreciation costs; Taxes and cash inflows from corporate tax relief.

Calculate the Present Value of cash flow streams based on desired Discount Rates of
return.

Measure the precise Effective Interest Rate after Fees; security deposits; and Payment
terms are included in the calculations.

Prepare customized Payment Schedules with Fiscal, Calendar or Anniversary totals and
transfer data to Word, Excel or clipboard.

Evaluate the consequences of Principle and / or Interest rate variations during user
defined From – To periods.

Simulate how Amortization, Future Value and Present Value scenarios are impacted as
primary variables change in user-defined increments.
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SETTINGS FILE
The SETTINGS file is used to define the following:
1. Company Name – to appear in all report headers
2. Company Fiscal Year End [example: March 31st] - Used to calculate report totals by Fiscal
Period; Calendar Year or Anniversary date.
3. Taxes – Up to 3 separate Tax records to apply on Lease payments. The RECOVERABLE
option [ex: HST in Canada] adjusts cash outflows in Analysis reports.
4. Discount Rate – Internal rate expected from corporate investments
5. Blended Corporate Tax Rate – Estimated total corporate Tax rate applied on Profits and
is used to calculate Tax Relief amounts in Analysis reports.
6. Corporate Tax Rate on Invested Capital – Additional Tax field.
7. Compounding Period – Used to calculate interest compounding process.
SETTINGS FILE
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Loan / Lease – Creating New Scenarios
Highlights

DETAIL TAB - Basic Loan data [see picture below]

Type – Options: Loan; Capital Lease or Operating Lease

Value To Calculate – Options: Payment Amount; Lease / Loan Amount; Interest Rate;
Balloon Amount ; Lease / Loan Length

Loan Length; Interest rate – Term of loan and rate of interest

Balloon Payment – For LOANS ONLY - payment due at end of term

Buy-Out Amount (LEASES ONLY) – amount (optional) due at end of lease to purchase

Compounding Period – for interest calculations

Payment Frequency – Weekly, Bi-weekly, Semi – Monthly, Monthly, Quarterly, SemiAnnually, Annually

Number of Zero Payments – Number of months where borrower pays Interest only. For
example, if user enters 3, only interest is due first 3 months. Total payment amount
from month 4 to end of term will be adjusted to reflect zero principle first 3 months

Accelerated – enabled for weekly, bi-weekly and semi-monthly payment plans.
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DETAIL TAB
Add / Change fields and Click to calculate Values
Click to display statistics on Loan / Lease
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CALCULATED SUMMARY STATISTICS – FOR LOANS
NOTE:

Present Value – uses Discount Rate from SETTINGS file [discussed previously]

SIMULATION box ( LOANS ONLY) - If you entered “What-if” records [see
Simulation Tab discussed next sections]; summaryresults will appear here.

Statistics dialog box for Leases highlights total Taxes and Fees paid; security
deposits and refund amounts due at end of term.
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Click to display Template for Payment Schedule Report
Payment Schedule Template
Year Type – Options: Totals will be calculated on Fiscal period [SETTINGS file]; Calendar
or scenario Anniversary basis.
Include Cover Page – To include detailed cover page summarizing scenario details
Statistics – Select period and cumulative totals to include in schedules.
SAMPLE Loan Cover Page and Payment Schedule
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CHARGES / OTHER TAB
For Leases – You can specify:
1. Fees – Front & back End Fees
2. Security Deposits
3. Refund Due at end of term
4. HST / State Tax / etc. – Up to 3 Tax records can be defined in SETTINGS file to apply
against Lease Payments.
5. Lease details – Summary Operating Expenses (see sample below) are reflected in the
Net Advantage of Leasing analysis report.
Charges / Other Tab

Effective Interest Rate impacted by: Fees / Charges, Deposits and Payment Terms

Loans default to Payments in Arrears; Leases default to Payments in Advance.
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Depreciation TAB
You can optionally elect to include Depreciation costs in the Analysis Reports. Depreciation
Options - Straight Line; Declining Balance; Compound; Sum of Digits.
DEPRECIATION ENTRY TAB

Click to enable Depreciation calculations in Analysis and Net Advantage of Leasing
reports

Use Down Payment, Undepreciable costs and Salvage Value fields to set Depreciable
value.
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LOAN SIMULATION TAB
You can optionally perform “what-if” analysist on any loan to determine the following:

What interest savings may accrue to you if you elect to make additional Principle
payments based on user defined From – To time periods

Consequences should interest rates vary during any user defined From – To periods
during the term of the loan.
LOAN SIMULATION TAB & Comparative Statistics
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Notes:

Example – Apply an additional $200 to the Principle Payments from January 1 st, 2012 to
December 31st, 2013 keeping Interest Rate same at 1% and compare to base values.

User may enter multiple simulation records for different date ranges

Frequency could be: On Payment Date; Monthly or Yearly

User may adjust Principle amount or Interest rate or both for specified date ranges.

Consequences from these simulation are reflected in the STATISTICS tab discussed
previously.
LOAN ANALYSIS REPORT
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LEASE ANALYSIS REPORT
Net Advantage of Leasing Report
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AMORTIZATION CALCULATOR
Highlights

Base parameter entries include:

Loan Amount; Loan Length; Interest rate

Balloon Payment – payment that may be due at end of term

Compounding Period – for interest calculations

Payment Frequency – Weekly, Bi-weekly, Semi – Monthly, Monthly, Quarterly, SemiAnnually, Annually.
Sample: What will the monthly payments be if the loan term is incremented by 3 months
and the interest rate increases in increments of .125%?
Simulation capability

Row and Column variables and incremental value ranges to perform “what-If”

Option to display total interest costs over the full-term of the loan.
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FUTURE VALUE CALCULATOR
Highlights

Base parameter entries include:

Value to Calculate – Future Value; Current Savings or Additional Contributions

Future Value – The value at a future period of a current savings amount plus accrued
interest including periodic additional savings contributions

Current Savings [starting amount]; Time Horizon [base investment period];
Percentage of the earned interest you wish to re-invest [from 0% - 100%]

Additional contributions you wish to make & Frequency of such contributions.

Interest rate; Compounding period for Interest calculations.
Sample: What will the Future Value be if additional contributions increase in increments of $750
per period and Interest Rates increase in increments of .125%?
Simulation capability

Row and Column variables and incremental value ranges to perform “what-If”.
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PRESENT VALUE CALCULATOR
Highlights

Base parameter entries include:

Value to Calculate Options – Present Value; Income Amount or Amount at Maturity

Present value – The value today of an income stream at a specified rate of return
over a defined period of time.

Time Horizon – future time period

Income Amount & Frequency – income amount and frequency expected to be
generated

Discount Interest rate & Compounding period – Interest rate expected from an
investment and Compounding rate

Amount At Maturity.
Simulation capability

Row and Column variables and incremental value ranges to perform “what-If”.
Sample: Calculate Present Value if Amount At Maturity is increased in increments of $1000
and the Discount Interest Rate is increased in increments of .125%?
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WorthIT Suite of applications includes: WorthIT Fixed Assets; Image Gallery; Report Gallery &
BarCode Gallery. This integrated suite provides one of the most comprehensive Fixed Assets
Management solutions anywhere.
WorthIT Lease & Loan Analyzer represents the newest addition to this suite of applications
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www.mrscompany.com
Local: 416-620-2720
Toll Free #: 1-888-967-8411
5535 Eglinton Avenue West, Suite 214, Toronto, Ontario M9C 5K5
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