Cost of Capital 0.

12 No Tax Change Scenario

Equipment Costs
Installation Costs
ITC
PV at 12%
PV (2,494,642.86)

Cost savings(Pre-Tax):
Old Equipment Cost 500,000 Fuel
Old Equipment Installation Cost 500,000 Others
Cost savings(After-Tax)

Depreciation New
Depreciation Old
Depreciation Change
Tax savings from Depreciation
PV

Salvage Values
New
Old
PV

NPV
 1985 1986 1987 1988 1989 1990
(1,050,000.00) (1,050,000.00)
(800,000.00)
232,000.00
(1,050,000.00) (1,618,000.00)

360,000.00 360,000.00 360,000.00 360,000.00

200,000.00 200,000.00 200,000.00 200,000.00
(After-Tax) - 302,400.00 302,400.00 302,400.00 302,400.00
$1,525,560.22
435,000.00 739,500.00 517,650.00 483,140.00 483,140.00
33,000.00 32,000.00
435,000.00 706,500.00 485,650.00 483,140.00 483,140.00
from Depreciation 200,100.00 324,990.00 223,399.00 222,244.40 222,244.40
$920,397.49

- - - - -
110,900.00 - - - -
128,512.91

79,827.75
 1991 1992 1993 1994 1995 1996

360,000.00 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00

200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
302,400.00 302,400.00 302,400.00 302,400.00 302,400.00 302,400.00

241,570.00 - - - - -

241,570.00 - - - - -
111,122.20 - - - - -

- - - - - 135,000.00
- - - - - (32,400.00)
Cost of Capital 0.12 Tax Change With Grandfathering

PV

Old Equipment Cost 500,000

Old Equipment Installation Cost 500,000
 1985 1986 1987 1988
Equipment Costs (1,050,000.00) (1,050,000.00)
Installation Costs (800,000.00)
ITC 232,000.00
PV at 12% (1,050,000.00) (1,618,000.00)
(2,494,642.86)

Cost savings(Pre-Tax):
Fuel 360,000.00 360,000.00
Others 200,000.00 200,000.00
Cost savings(After-Tax) - 369,600.00 369,600.00
$1,864,573.60
Depreciation New 435,000.00 739,500.00 517,650.00
Depreciation Old 33,000.00 32,000.00
Depreciation Change 435,000.00 706,500.00 485,650.00
Tax savings from Depreciation 147,900.00 240,210.00 165,121.00
PV $680,293.80

Salvage Values
New - - -
Old 121,100.00 - -
144,174.50

NPV 194,399.04
 1989 1990 1991 1992 1993 1994 1995

360,000.00 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00

200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
369,600.00 369,600.00 369,600.00 369,600.00 369,600.00 369,600.00 369,600.00

483,140.00 483,140.00 241,570.00 - - - -

483,140.00 483,140.00 241,570.00 - - - -

164,267.60 164,267.60 82,133.80 - - - -

- - - - - - -
- - - - - - -
 1996

360,000.00
200,000.00
369,600.00

-
-

165,000.00
(39,600.00)
Cost of Capital 0.12 Tax Change Without Grandfathering

PV

Old Equipment Cost 500,000

Old Equipment Installation Cost 500,000
dfathering 1985 1986 1987 1988
Equipment Costs (1,050,000.00) (1,050,000.00)
Installation Costs (800,000.00)
ITC -
PV at 12% (1,050,000.00) (1,850,000.00)
(2,701,785.71)

Cost savings(Pre-Tax):
Fuel 360,000.00 360,000.00
Others 200,000.00 200,000.00
Cost savings(After-Tax) - 369,600.00 369,600.00
$1,864,573.60
Depreciation New 414,410.00 710,210.00 507,210.00
Depreciation Old 33,000.00 32,000.00
Depreciation Change 414,410.00 677,210.00 475,210.00
Tax savings from Depreciation 140,899.40 230,251.40 161,571.40
PV $654,737.22

Salvage Values
New - - -
Old 121,100.00 - -
144,174.50

NPV (38,300.40)
 1989 1990 1991 1992 1993 1994 1995

360,000.00 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00

200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
369,600.00 369,600.00 369,600.00 369,600.00 369,600.00 369,600.00 369,600.00

362,210.00 258,970.00 258,680.00 258,970.00 129,340.00 - -

362,210.00 258,970.00 258,680.00 258,970.00 129,340.00 - -

123,151.40 88,049.80 87,951.20 88,049.80 43,975.60 - -

- - - - - - -
- - - - - - -
 1996

360,000.00
200,000.00
369,600.00

-
-

165,000.00
(39,600.00)
 ჩვენით მოვიფიქრეთ ეს პროც
50% მივანიჭეთ Tax Change With

Probability
NPV(No Tax Change Scenario) 79,827.75 25%
NPV(Tax Change With Grandfathering) 194,399.04 50%
NPV(Tax Change Without Grandfather) (38,300.40) 25%

NPV Of the whole project 107,581.36

ვენით მოვიფიქრეთ ეს პროცენტები, რათა მთლიანი პროექტის NPV დაგვეთვალა
0% მივანიჭეთ Tax Change With Grandfathering ქვემოთ მოცემული ტექსტის გამო
Cost of Capital 0.12 No Tax Change Scenario
Minimum Saving Required

PV

Old Equipment Cost 500,000

Old Equipment Installation Cost 500,000
 1985 1986 1987 1988
Equipment Costs (1,050,000.00) (1,050,000.00)
Installation Costs (800,000.00)
ITC 232,000.00
PV at 12% (1,050,000.00) (1,618,000.00)
(2,494,642.86)

Cost savings(Pre-Tax):
Others 526,150.76 526,150.76
Cost savings(After-Tax) - 284,121.41 284,121.41
$1,433,347.62

Depreciation New 435,000.00 739,500.00 517,650.00

Depreciation Old 33,000.00 32,000.00
Depreciation Change 435,000.00 706,500.00 485,650.00
Tax savings from Depreciation 200,100.00 324,990.00 223,399.00
PV $920,397.49

Salvage Values
New - - -
Old 110,900.00 - -
128,512.91

NPV (12,384.84)
 1989 1990 1991 1992 1993 1994

526,150.76 526,150.76 526,150.76 526,150.76 526,150.76 526,150.76

284,121.41 284,121.41 284,121.41 284,121.41 284,121.41 284,121.41

483,140.00 483,140.00 241,570.00 - - -

483,140.00 483,140.00 241,570.00 - - -

222,244.40 222,244.40 111,122.20 - - -

- - - - - -
- - - - - -
 1995 1996

526,150.76 526,150.76
284,121.41 284,121.41

- -

- -
- -

- 135,000.00
- (32,400.00)
Cost of Capital 0.12 Tax Change With Grandfathering
Minimum Saving Required

PV

Old Equipment Cost 500,000

Old Equipment Installation Cost 500,000
 1985 1986 1987 1988
Equipment Costs (1,050,000.00) (1,050,000.00)
Installation Costs (800,000.00)
ITC 232,000.00
PV at 12% (1,050,000.00) (1,618,000.00)
(2,494,642.86)

Cost savings Total(Pre-Tax) 526,150.76 526,150.76

Cost savings(After-Tax) - 347,259.50 347,259.50
$1,751,869.32

Depreciation New 435,000.00 739,500.00 517,650.00

Depreciation Old 33,000.00 32,000.00
Depreciation Change 435,000.00 706,500.00 485,650.00
Tax savings from Depreciation 147,900.00 240,210.00 165,121.00
PV $680,293.80

Salvage Values
New - - -
Old 121,100.00 - -
144,174.50

NPV 81,694.76
 1989 1990 1991 1992 1993 1994 1995

526,150.76 526,150.76 526,150.76 526,150.76 526,150.76 526,150.76 526,150.76

347,259.50 347,259.50 347,259.50 347,259.50 347,259.50 347,259.50 347,259.50

483,140.00 483,140.00 241,570.00 - - - -

483,140.00 483,140.00 241,570.00 - - - -

164,267.60 164,267.60 82,133.80 - - - -

- - - - - - -
- - - - - - -
 1996

526,150.76
347,259.50

-
-

165,000.00
(39,600.00)
Cost of Capital 0.12 Tax Change Without Grandfathering
Minimum Saving Required

PV

Old Equipment Cost 500,000

Old Equipment Installation Cost 500,000
 1985 1986 1987 1988
Equipment Costs (1,050,000.00) (1,050,000.00)
Installation Costs (800,000.00)
ITC -
PV at 12% (1,050,000.00) (1,850,000.00)
(2,701,785.71)

Cost savings Total(Pre-Tax) 526,150.76 526,150.76

Cost savings(After-Tax) - 347,259.50 347,259.50
$1,751,869.32

Depreciation New 414,410.00 710,210.00 507,210.00

Depreciation Old 33,000.00 32,000.00
Depreciation Change 414,410.00 677,210.00 475,210.00
Tax savings from Depreciation 140,899.40 230,251.40 161,571.40
PV $654,737.22

Salvage Values
New - - -
Old 121,100.00 - -
144,174.50

NPV (151,004.68)
 1989 1990 1991 1992 1993 1994 1995

526,150.76 526,150.76 526,150.76 526,150.76 526,150.76 526,150.76 526,150.76

347,259.50 347,259.50 347,259.50 347,259.50 347,259.50 347,259.50 347,259.50

362,210.00 258,970.00 258,680.00 258,970.00 129,340.00 - -

362,210.00 258,970.00 258,680.00 258,970.00 129,340.00 - -

123,151.40 88,049.80 87,951.20 88,049.80 43,975.60 - -

- - - - - - -
- - - - - - -
 1996

526,150.76
347,259.50

-
-

165,000.00
(39,600.00)
 Probability
NPV(No Tax Change Scenario) (12,384.84) 25.00%
NPV(Tax Change With Grandfathering) 81,694.76 50.00%
NPV(Tax Change Without Grandfather) (151,004.68) 25.00%

NPV Of the whole project $0.00

Cost of Capital 0.12 No Tax Change Scenario
Maximum Equipment Cost
Total New Equipment Cost 2,248,612.45

PV

Old Equipment Cost 500,000

Old Equipment Installation Cost 500,000
 1985 1986 1987 1988
Equipment Costs (1,124,306.23) (1,124,306.23)
Installation Costs (800,000.00)
Total Equipment Cost
ITC 243,889.00
PV at 12% (1,124,306.23) (1,680,417.23)
(2,624,678.75)

Cost savings(Pre-Tax):
Fuel 360,000.00 360,000.00
Others 200,000.00 200,000.00
Cost savings(After-Tax) - 302,400.00 302,400.00
$1,525,560.22
Depreciation New 457,291.87 777,396.17 544,177.32
Depreciation Old 33,000.00 32,000.00
Depreciation Change 457,291.87 744,396.17 512,177.32
Tax savings from Depreciation 210,354.26 342,422.24 235,601.57
PV $968,720.94

Salvage Values
New - - -
Old 110,900.00 - -
128,512.91

NPV (1,884.69)
 1989 1990 1991 1992 1993 1994

360,000.00 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00

200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
302,400.00 302,400.00 302,400.00 302,400.00 302,400.00 302,400.00

507,898.83 507,898.83 253,949.42 - - -

507,898.83 507,898.83 253,949.42 - - -

233,633.46 233,633.46 116,816.73 - - -

- - - - - -
- - - - - -
 1995 1996

360,000.00 360,000.00
200,000.00 200,000.00
302,400.00 302,400.00

- -

- -
- -

- 135,000.00
- (32,400.00)
Cost of Capital 0.12 Tax Change Without Grandfathering
Maximum Equipment Cost
Total New Equipment Cost 2,248,612.45

PV

Old Equipment Cost 500,000

Old Equipment Installation Cost 500,000
 1985 1986 1987 1988
Equipment Costs (1,124,306.23) (1,124,306.23)
Installation Costs (800,000.00)
ITC 243,889.00
PV at 12% (1,124,306.23) (1,680,417.23)
(2,624,678.75)

Cost savings(Pre-Tax):
Fuel 360,000.00 360,000.00
Others 200,000.00 200,000.00
Cost savings(After-Tax) - 369,600.00 369,600.00
$1,864,573.60
Depreciation New 435,646.72 746,605.19 533,202.32
Depreciation Old 33,000.00 32,000.00
Depreciation Change 435,646.72 713,605.19 501,202.32
Tax savings from Depreciation 148,119.88 242,625.76 170,408.79
PV $689,144.89

Salvage Values
New - - -
Old 121,100.00 - -
144,174.50

NPV 73,214.24
 1989 1990 1991 1992 1993 1994 1995

360,000.00 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00

200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
369,600.00 369,600.00 369,600.00 369,600.00 369,600.00 369,600.00 369,600.00

380,771.70 272,241.09 271,936.23 272,241.09 135,968.12 - -

380,771.70 272,241.09 271,936.23 272,241.09 135,968.12 - -

129,462.38 92,561.97 92,458.32 92,561.97 46,229.16 - -

- - - - - - -
- - - - - - -
 1996

360,000.00
200,000.00
369,600.00

-
-

165,000.00
(39,600.00)
Cost of Capital 0.12 Tax Change Without Grandfathering
Maximum Equipment Cost
Total New Equipment Cost 2,248,612.45

PV

Old Equipment Cost 500,000

Old Equipment Installation Cost 500,000
dfathering 1985 1986 1987 1988
Equipment Costs (1,124,306.23) (1,124,306.23)
Installation Costs (800,000.00)
ITC -
PV at 12% (1,124,306.23) (1,924,306.23)
(2,842,436.78)

Cost savings(Pre-Tax):
Fuel 360,000.00 360,000.00
Others 200,000.00 200,000.00
Cost savings(After-Tax) - 369,600.00 369,600.00
$1,864,573.60
Depreciation New 435,646.72 746,605.19 533,202.32
Depreciation Old 33,000.00 32,000.00
Depreciation Change 435,646.72 713,605.19 501,202.32
Tax savings from Depreciation 148,119.88 242,625.76 170,408.79
PV $689,144.89

Salvage Values
New - - -
Old 121,100.00 - -
144,174.50

NPV (144,543.79)
 1989 1990 1991 1992 1993 1994 1995

360,000.00 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00

200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
369,600.00 369,600.00 369,600.00 369,600.00 369,600.00 369,600.00 369,600.00

380,771.70 272,241.09 271,936.23 272,241.09 135,968.12 - -

380,771.70 272,241.09 271,936.23 272,241.09 135,968.12 - -

129,462.38 92,561.97 92,458.32 92,561.97 46,229.16 - -

- - - - - - -
- - - - - - -
 1996

360,000.00
200,000.00
369,600.00

-
-

165,000.00
(39,600.00)
 Probability
NPV(No Tax Change Scenario) (1,884.69) 25.00%
NPV(Tax Change With Grandfathering) 73,214.24 50.00%
NPV(Tax Change Without Grandfather) (144,543.79) 25.00%

NPV Of the whole project $0.00

Cost of Capital 0.12 No Tax Change Scenario
Fuel Price Go up 6.00% Equipment Costs
Installation Costs
ITC
PV at 12%
PV (2,494,642.86)

Cost savings(Pre-Tax):
Old Equipment Cost 500,000 Fuel
Old Equipment Installation Cost 500,000 Others
Cost savings(After-Tax)

Depreciation New
Depreciation Old
Depreciation Change
Tax savings from Depreciation
PV

Salvage Values
New
Old
PV

NPV

a
b
c

ab
ac

ab-ac=
a(b-c)=

a*1.06(b-c)=
 1985 1986 1987 1988 1989
(1,050,000.00) (1,050,000.00)
(800,000.00)
232,000.00
(1,050,000.00) (1,618,000.00)

360,000.00 360,000.00 360,000.00

200,000.00 200,000.00 200,000.00
(After-Tax) - 302,400.00 302,400.00 302,400.00
$1,620,295.62
435,000.00 739,500.00 517,650.00 483,140.00
33,000.00 32,000.00
435,000.00 706,500.00 485,650.00 483,140.00
from Depreciation 200,100.00 324,990.00 223,399.00 222,244.40
$920,397.49

- - - -
110,900.00 - - -
128,512.91

174,563.16

ფასი
რაოდენობა ძველი
რაოდენობა ახალი

საწვავში გადახდილი ძველში

საწვავში გადახდილი ახალში

360,000.00
360,000.00

381,600.00
 1990 1991 1992 1993 1994 1995

360,000.00 381,600.00 404,496.00 428,765.76 454,491.71 481,761.21

200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
302,400.00 314,064.00 326,427.84 339,533.51 353,425.52 368,151.05

483,140.00 241,570.00 - - - -

483,140.00 241,570.00 - - - -
222,244.40 111,122.20 - - - -

- - - - - -
- - - - - -
 1996

510,666.88
200,000.00
383,760.12

-
-

135,000.00
(32,400.00)
Cost of Capital 0.12 Tax Change With Grandfathering
Fuel Price Go up 6.00%

PV

Old Equipment Cost 500,000

Old Equipment Installation Cost 500,000
 1985 1986 1987 1988
Equipment Costs (1,050,000.00) (1,050,000.00)
Installation Costs (800,000.00)
ITC 232,000.00
PV at 12% (1,050,000.00) (1,618,000.00)
(2,494,642.86)

Cost savings(Pre-Tax):
Fuel 360,000.00 360,000.00
Others 200,000.00 200,000.00
Cost savings(After-Tax) - 369,600.00 369,600.00
$1,980,361.32
Depreciation New 435,000.00 739,500.00 517,650.00
Depreciation Old 33,000.00 32,000.00
Depreciation Change 435,000.00 706,500.00 485,650.00
Tax savings from Depreciation 147,900.00 240,210.00 165,121.00
PV $680,293.80

Salvage Values
New - - -
Old 121,100.00 - -
144,174.50

NPV 310,186.76
 1989 1990 1991 1992 1993 1994 1995

360,000.00 360,000.00 381,600.00 404,496.00 428,765.76 454,491.71 481,761.21

200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
369,600.00 369,600.00 383,856.00 398,967.36 414,985.40 431,964.53 449,962.40

483,140.00 483,140.00 241,570.00 - - - -

483,140.00 483,140.00 241,570.00 - - - -

164,267.60 164,267.60 82,133.80 - - - -

- - - - - - -
- - - - - - -
 1996

510,666.88
200,000.00
469,040.14

-
-

165,000.00
(39,600.00)
Cost of Capital 0.12 Tax Change Without Grandfathering
Fuel Price Go up 6.00%

PV

Old Equipment Cost 500,000

Old Equipment Installation Cost 500,000
dfathering 1985 1986 1987 1988
Equipment Costs (1,050,000.00) (1,050,000.00)
Installation Costs (800,000.00)
ITC -
PV at 12% (1,050,000.00) (1,850,000.00)
(2,701,785.71)

Cost savings(Pre-Tax):
Fuel 360,000.00 360,000.00
Others 200,000.00 200,000.00
Cost savings(After-Tax) - 369,600.00 369,600.00
$1,980,361.32
Depreciation New 414,410.00 710,210.00 507,210.00
Depreciation Old 33,000.00 32,000.00
Depreciation Change 414,410.00 677,210.00 475,210.00
Tax savings from Depreciation 140,899.40 230,251.40 161,571.40
PV $654,737.22

Salvage Values
New - - -
Old 121,100.00 - -
144,174.50

NPV 77,487.32
 1989 1990 1991 1992 1993 1994 1995

360,000.00 360,000.00 381,600.00 404,496.00 428,765.76 454,491.71 481,761.21

200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
369,600.00 369,600.00 383,856.00 398,967.36 414,985.40 431,964.53 449,962.40

362,210.00 258,970.00 258,680.00 258,970.00 129,340.00 - -

362,210.00 258,970.00 258,680.00 258,970.00 129,340.00 - -

123,151.40 88,049.80 87,951.20 88,049.80 43,975.60 - -

- - - - - - -
- - - - - - -
 1996

510,666.88
200,000.00
469,040.14

-
-

165,000.00
(39,600.00)
 Probability
NPV(No Tax Change Scenario) 174,563.16 25.00%
NPV(Tax Change With Grandfathering) 310,186.76 50.00%
NPV(Tax Change Without Grandfather) 77,487.32 25.00%

NPV Of the whole project If fuel price goes up $218,106.00

NPV Of the whole project if fuel price stays the same 107,581.36
Difference $110,524.64