PDF Publication Title:
Text from PDF Page: 061
at an assumed inflation rate of 3% per year thereafter; the investment is not replaced; 5-year double- declining depreciation schedule; a marginal federal income tax rate of 34%; no state income tax; production of 1000 units of energy in the first year of operation, 950 in the second, 925 in the third, and 900 in the fourth and fifth;and energy sold for $10 a unit in year zero, inflating at 3% per year thereafter. Year investment (4 0 $ 10,000 1 0 2 0 3 0 4 0 5 0 O&M Costs (b) $0 1,339 1,379 1,421 1,463 1,507 Revenues (c) Table 4-10. After-Tax IRR Net Taxable Federal Income Tax (9 = e x tax $ 1,687 2,142 2,464 2,580 2,668 After-Tax Cash Flow (9) = (c-a-b-9 7,274 6,558 6,223 6,087 6,259 Depreciation (d) 10,30Q 10,079 2,400 10,108 1,440 10,130 1,080 10,494 1,080 Income ( 0 ) = (eb-d) $I 4,961 6,300 7,247 7,587 7,847 An IRR equal to 61% is calculated when the formula is applied to the after-tax cash flow scenario (successive approximation methods can be used to find the rate that equates the present value of cash flowstozero). Inotherwords,thepresentvalueofthisafter-taxcashflowscenarioiszeroifadiscount rateof61%isassumed. Inthisscenario,iftheinvestor’shurdlerateishigherthan61%,thentheinvestor will more thanlikely invest his or her money elsewhere; whereas, if the hurdle rate is lower than 61%, the investor may view the investment as a good opportunity. It is also important to note that the 6 1%IRR is actually the nominal IRR and should be stated as such. This is the case because the cash flows on which the IRR was calculated were in current dollars. If the dollars had been constant, the IRR would have been a real IRR. The equation for IRR is a polynomial of degree N and, as such, the analyst must be aware that there are N different roots, or solutions, to the equation. However, when the investment pattern is normal (i.e., the initial investment or cash outflow is followed by a stream of cash inflows), all solutions are either negative or imaginary, except for one positive solution, On the other hand, if the cash flow is such that large outflows occur during or near the end of the life of the investment, then the possibility of multiple positive roots arises (Palm and Qayum 1985). Because of the complexity of the required calculations and multiple potential roots, some software for personal computers requires a guess at the IRR prior to calculation (Lotus 2991). For situations in which there is a close approximate value, this poses little difficulty to the analyst. However, when the analyst does not have an approximate value, this could pose a problem and add doubt to the results. IRRanalysismaynotfullyconsiderthepatternofinvestmentsandreturnsovertime. Forexample,two investment projects with an IRR of 17% might be considered equal, but if there are different analysis periods for the two projects (e.g., 20 years for project A and 3 years for project B), a decision maker mightnotbeindifferentregardingthechoiceofAorB. Thatis,aninvestormayfindasustained20-year revenue stream at 17% more desirable than a 3-year payment flow at the same rate. 53 4,000PDF 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)