Choosing the Right Financing 59- Net investment
- Reduction in operating expense
- Energy savings
- Return on investment (ROI)
- Internal rate of return (IRR)
- Net present value (NPV)
- Net operating income (NOI)
- Impact on asset value
In addition to the above outputs, the calculator also estimates the
impact the proposed energy efficiency changes will have on a property’s
ENERGY STAR rating.
The tool provides two ways to use its calculations. Users can save
and print a summary of their results, or they can generate a letter high-
lighting the financial value for use as part of a capital investment pro-
posal. Because energy efficiency projects generally improve net operating
income, which is an important consideration when buying and selling
commercial properties, the Financial Value Calculator provides strong fi-
nancial arguments in favor of implementing these projects.
Financial Value Calculator
Investments in energy performance can have a favorable impact on
profit margins, earnings per share, and ultimately, shareholder value. The
Financial Value Calculator is another tool built on an EXCEL™ platform.
It presents energy investment opportunities using the key financial met-
rics managers need to convey the message of improved energy perfor-
mance to customers.
Cash Flow Opportunity Calculator
The Cash Flow Opportunity Calculator (“CFO Calculator”) has
proven to be a very effective tool, especially for public sector projects. This
set of spreadsheets helps create a sense of urgency about implementing
energy efficiency projects by quantifying the costs of delaying the project
implementation. It was developed to help decision makers address three
critical questions about energy efficiency investments:
- How much of the new energy efficiency project can be paid for us-
ing the anticipated savings? - Should this project be financed now, or is it better to wait and use