Build-vs-Lease ROI Studio

Build-vs-Lease ROI Studio (IRU/Dark vs Lit Waves)

Compare NPV, Levelized Monthly Cost (LMC), total nominal cost, and savings IRR/payback vs lit baseline. Monthly discounting.

Analysis term (years)

Discount rate (annual, %)

Monthly r = (1+annual)^1/12−1

Units

Build & Own (Construct + Operate)

Route length

Capex per unit length ($/km or $/mi)

Extra capex adders ($ total)

Make-ready, entrances, permits

Contingency (%)

Build duration (months)

Spreads CAPEX across this period

Mobilization / NRC ($, month 0)

O&M (% of CAPEX per year)

Residual value at term (% of CAPEX)

Credited as +cashflow in final month

Unlevered analysis. CAPEX is phased; O&M accrues monthly.

IRU / Dark Lease

Route length

IRU fee per unit ($/km or $/mi)

Paid at month 0

Annual O&M per unit

IRU NRC ($, month 0)

IRU term (years)

Must be ≤ analysis term

Residual at term (% of IRU fee)

IRU modeled as upfront fee + annual O&M. O&M ends after IRU term.

Lit Waves (Baseline)

MRC ($/mo)

NRC ($, month 0)

Annual escalator (%)

Applied each 12 months

# of lit waves

Multiplies MRC/NRC

Lit is the baseline for savings/IRR/payback.

Results (monthly discounting)

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Build & Own

NPV of costs

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Levelized Monthly Cost

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Total nominal cost

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Savings IRR vs Lit

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Payback vs Lit

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IRU / Dark

NPV of costs

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Levelized Monthly Cost

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Total nominal cost

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Savings IRR vs Lit

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Payback vs Lit

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Lit Waves (Baseline)

NPV of costs

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Levelized Monthly Cost

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Total nominal cost

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Escalator (annual)

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Waves counted

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Shareable summary

Assumptions & methodology

Monthly discounting: r_m = (1+r_a)^1/12−1. NPV = Σ CF_t / (1+r_m)^t.
Levelized Monthly Cost: LMC = NPV × CRF, where CRF = r_m(1+r_m)^N/((1+r_m)^N−1).
Savings series = Cost_Lit − Cost_Option; IRR/Payback computed on this series.
Build CAPEX is phased; residuals credit a positive terminal cashflow.