Project Documentation & Technical Deep Dive

Core Financial Engine

// Aircraft Financing Analysis Engine
const calculateAircraftFinancingMetrics = (aircraftType, params) => {
  // Loan Amortization
  const monthlyRate = params.debtRate / 12;
  const totalPayments = params.debtTerm * 12;
  const monthlyPayment = (params.debtAmount * monthlyRate * 
    Math.pow(1 + monthlyRate, totalPayments)) / 
    (Math.pow(1 + monthlyRate, totalPayments) - 1);
  
  // Annual Cash Flows
  const annualCashFlows = [];
  for (let year = 1; year <= params.analysisPeriod; year++) {
    const leaseRevenue = params.annualLeaseRevenue * 
      Math.pow(1 + params.leaseEscalation, year - 1);
    const operatingExpenses = params.annualOperatingExpenses * 
      Math.pow(1 + params.inflation, year - 1);
    const debtService = monthlyPayment * 12;
    const netCashFlow = leaseRevenue - operatingExpenses - debtService;
    annualCashFlows.push(netCashFlow);
  }
  
  // NPV Calculation
  const npv = -params.equityAmount + 
    annualCashFlows.reduce((sum, cf, i) => 
      sum + cf / Math.pow(1 + params.wacc, i + 1), 0);
  
  // IRR Calculation (Iterative)
  const irr = calculateIRR([-params.equityAmount, ...annualCashFlows]);
  
  return { npv, irr, annualCashFlows, monthlyPayment };
};

Sensitivity Analysis Engine

// Monte Carlo Sensitivity Analysis
const performSensitivityAnalysis = (metrics, params) => {
  const scenarios = [];
  const variables = ['leaseRate', 'debtRate', 'wacc', 'residualValue'];
  
  variables.forEach(variable => {
    const baseValue = params[variable];
    const minus20 = baseValue * 0.8;
    const plus20 = baseValue * 1.2;
    
    const minus20NPV = calculateNPVWithVariable(params, variable, minus20);
    const plus20NPV = calculateNPVWithVariable(params, variable, plus20);
    
    scenarios.push({
      variable,
      impact: Math.abs(plus20NPV - minus20NPV) / 2
    });
  });
  
  return scenarios.sort((a, b) => b.impact - a.impact);
};

Discounted Cash Flow (DCF) Analysis

Risk Metrics