Energy Project Financing : Resources and Strategies for Success

Financing Energy Management Projects 13

Table 2-1. Table of Sample Equations used in Economic Analyses.

——————————————————————————————————————————————————— A

B

C

D

E

F

G

H

I

J

———————————————————————————————————————————————————

Payments

Principal

Taxable

EOY Savings Depreciation Principal Interest

Total

Outstanding

Income

Tax

ATCF

——————————————————————————————————————————————————— n n+1

= (MACRS %)*

=(D) +(E) =(G at year n) =(B)–(C)–(E) =(H)*(tax rate) =(B)–(F)–(I)

n+2

(Purchase Price)

–(D at year n+1)

———————————————————————————————————————————————————