Financing Energy Management Projects 29
Table 2-9. Economic Analysis for a True Lease——————————————————————————————————————————————EOY Savings Depr.PaymentsPrincipal TaxableTaxATCFPrincipal InterestTotal Outstanding Income—————————————————————————————————————————————— 0400,000-400,000-400,0001 1,000,000400,000600,000 204,000396,0002 1,000,000400,000600,000 204,000396,0003 1,000,000400,000600,000 204,000396,0004 1,000,000400,000600,000 204,000396,0005 1,000,0001,000,000 340,000660,000——————————————————————————————————————————————Net Present Value at 18%:$953,757——————————————————————————————————————————————Notes: Annual Lease Payment: 400,000MARR =18%Tax Rate34%——————————————————————————————————————————————