PDF Publication Title:
Text from PDF Page: 017
Table 2-2. Recommended Discount Rates for Projects Lacking Investment-Specific Data Government Industry Transportation Commercial Residential Utilitv Sector Real Discount Rate (”/o) 3.0’ 10.0 10.0 18.0 10.0 4.gb a. This rate is for energy investment decisions that include conservation or renewable energy alternatives. For other projects, see OMB’s recommended discount rate in Table 2-1. b. The before-tax discount rate to use is 6.4%. The value of such a “social”discount rate has been a controversy for decades, and at this point, the experts havenotagreedonsucharate. Manyhavearguedthatthesocialrateofdiscountshouldbeidenticalto the current private sector discount rates to ensure that public investments with low rates of return would notsupplanthigher-returnprivateinvestments. Othersarguethatthesocialrateshouldbelowerthanthe private rate and equal to the consumption rate-the rate at which consumers are willing to displace consumptionnowforconsumptioninthefuture, Ahigherrateworksagainstrenewablesandconservation technologies and generally favors conventional fossil fuel technologies. As such, it is recommended that, if needed, an appropriate social discount rate to use is the government rate outlined in Table 2-2. However, the analyst should be aware that the rates set by OMB and tihe Federal Energy Management Program could be a function of the current administration’s agenda. For example, an administration favoring less government spending and fewer government projects would push for higher discount rates, thus making it more difficult for projects to pass the cost-effectiveness test (Lind 1982). Discount rates are sometimes adjusted to reflect risk. The subject of risk-adjusted discount rates is covered in detail in the Uncertainty and Risk subsection in Section 2. Cost of Capital Introducfion The cost of capital is an important factor in the economic analyses of firms, utilities, and other business entities. The previous section illustsated that cost of capital is frequently used as the discount rate in economic analyses. The cost of capital has to be recovered by the investor to warrant his investment. The price of a good or service to a consumer in a competitive market or in a market subject to utility regulation will include a return roughly equal to the industry’s cost of capital. Higher returns attract increased investment, whereas lower returns discourage investment and lead to inadequate supplies and sources of investment capital. 9PDF Image | A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies
PDF Search Title:
A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy TechnologiesOriginal File Name Searched:
5173.pdfDIY PDF Search: Google It | Yahoo | Bing
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
IT XR Project Redstone NFT Available for Sale: NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Be part of the future with this NFT. Can be bought and sold but only one design NFT exists. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Turbine IT XR Project Redstone Design: NFT for sale... NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Includes all rights to this turbine design, including license for Fluid Handling Block I and II for the turbine assembly and housing. The NFT includes the blueprints (cad/cam), revenue streams, and all future development of the IT XR Project Redstone... More Info
Infinity Turbine ROT Radial Outflow Turbine 24 Design and Worldwide Rights: NFT for sale... NFT for the ROT 24 energy turbine. Be part of the future with this NFT. This design can be bought and sold but only one design NFT exists. You may manufacture the unit, or get the revenues from its sale from Infinity Turbine. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Supercritical CO2 10 Liter Extractor Design and Worldwide Rights: The Infinity Supercritical 10L CO2 extractor is for botanical oil extraction, which is rich in terpenes and can produce shelf ready full spectrum oil. With over 5 years of development, this industry leader mature extractor machine has been sold since 2015 and is part of many profitable businesses. The process can also be used for electrowinning, e-waste recycling, and lithium battery recycling, gold mining electronic wastes, precious metals. CO2 can also be used in a reverse fuel cell with nafion to make a gas-to-liquids fuel, such as methanol, ethanol and butanol or ethylene. Supercritical CO2 has also been used for treating nafion to make it more effective catalyst. This NFT is for the purchase of worldwide rights which includes the design. More Info
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
Infinity Turbine Products: Special for this month, any plans are $10,000 for complete Cad/Cam blueprints. License is for one build. Try before you buy a production license. May pay by Bitcoin or other Crypto. Products Page... More Info
CONTACT TEL: 608-238-6001 Email: greg@infinityturbine.com (Standard Web Page)