Cash Flows

Design A Interest Rate 10.00%

Gradient Years 0 1 2 3
NA Initial Costs $87,000,000 $0 $0 $0
$250,000 O&M Costs $0 $2,000,000 $2,250,000 $2,500,000
10.00% Benefits $0 $6,900,000 $7,590,000 $8,349,000
NA Salvage Value $0 $0 $0 $0
NA Net CF -$87,000,000 $4,900,000 $5,340,000 $5,849,000
Discounted CF -$87,000,000 $4,454,545 $4,413,223 $4,394,440
Payback -$87,000,000 -$82,100,000 -$76,760,000 -$70,911,000
Discounted Payback -$87,000,000 -$82,545,455 -$78,132,231 -$73,737,791

Design B Interest Rate 10.00%

Gradient Years 0 1 2 3
NA Initial Costs $90,000,000 $0 $0 $0
$200,000 O&M Costs $0 $3,500,000 $3,700,000 $3,900,000
13.00% Benefits $0 $5,500,000 $6,215,000 $7,022,950
NA Salvage Value $0 $0 $0 $0
NA Net CF -$90,000,000 $2,000,000 $2,515,000 $3,122,950
Discounted CF -$90,000,000 $1,818,182 $2,078,512 $2,346,319
Payback -$90,000,000 -$88,000,000 -$85,485,000 -$82,362,050
Discounted Payback -$90,000,000 -$88,181,818 -$86,103,306 -$83,756,987

Design C Interest Rate 10.00%

Gradient Years 0 1 2 3
NA Initial Costs $80,000,000 $0 $0 $0
$350,000 O&M Costs $0 $3,000,000 $3,350,000 $3,700,000
8.00% Benefits $0 $8,500,000 $9,180,000 $9,914,400
NA Salvage Value $0 $0 $0 $0
NA Net CF -$80,000,000 $5,500,000 $5,830,000 $6,214,400
Discounted CF -$80,000,000 $5,000,000 $4,818,182 $4,668,971
Payback -$80,000,000 -$74,500,000 -$68,670,000 -$62,455,600
Discounted Payback -$80,000,000 -$75,000,000 -$70,181,818 -$65,512,847

Design D Interest Rate 10.00%

Gradient Years 0 1 2 3
NA Initial Costs $72,000,000 $0 $0 $0
$450,000 O&M Costs $0 $2,500,000 $2,950,000 $3,400,000
12.50% Benefits $0 $5,500,000 $6,187,500 $6,960,938
NA Salvage Value $0 $0 $0 $0
NA Net CF -$72,000,000 $3,000,000 $3,237,500 $3,560,938
Discounted CF -$72,000,000 $2,727,273 $2,675,620 $2,675,385
Payback -$72,000,000 -$69,000,000 -$65,762,500 -$62,201,563
Discounted Payback -$72,000,000 -$69,272,727 -$66,597,107 -$63,921,722

Page 1
$80,000,000

$60,000,000
Cash Flows

$80,000,000

$60,000,000

$40,000,000

$20,000,000

Design A
Design B $0
Design C 1 2 3 4 5
Design D
-$20,000,000

-$40,000,000

-$60,000,000

-$80,000,000

-$100,000,000

Page 2
 Cash Flows

4 5 6 7 8 9 10
$0 $0 $0 $0 $0 $0 $0
$2,750,000 $3,000,000 $3,250,000 $3,500,000 $3,750,000 $4,000,000 $4,250,000
$9,183,900 $10,102,290 $11,112,519 $12,223,771 $13,446,148 $14,790,763 $16,269,839
$0 $0 $0 $0 $0 $0 $0
$6,433,900 $7,102,290 $7,862,519 $8,723,771 $9,696,148 $10,790,763 $12,019,839
$4,394,440 $4,409,963 $4,438,187 $4,476,674 $4,523,325 $4,576,337 $4,634,168
-$64,477,100 -$57,374,810 -$49,512,291 -$40,788,520 -$31,092,372 -$20,301,609 -$8,281,770
-$69,343,351 -$64,933,388 -$60,495,201 -$56,018,527 -$51,495,202 -$46,918,865 -$42,284,697

4 5 6 7 8 9 10
$0 $0 $0 $0 $0 $0 $0
$4,100,000 $4,300,000 $4,500,000 $4,700,000 $4,900,000 $5,100,000 $5,300,000
$7,935,934 $8,967,605 $10,133,393 $11,450,735 $12,939,330 $14,621,443 $16,522,231
$0 $0 $0 $0 $0 $0 $0
$3,835,934 $4,667,605 $5,633,393 $6,750,735 $8,039,330 $9,521,443 $11,222,231
$2,619,994 $2,898,215 $3,179,904 $3,464,194 $3,750,407 $4,038,021 $4,326,656
-$78,526,117 -$73,858,512 -$68,225,118 -$61,474,384 -$53,435,053 -$43,913,610 -$32,691,380
-$81,136,993 -$78,238,778 -$75,058,874 -$71,594,680 -$67,844,273 -$63,806,251 -$59,479,596

4 5 6 7 8 9 10
$0 $0 $0 $0 $0 $0 $0
$4,050,000 $4,400,000 $4,750,000 $5,100,000 $5,450,000 $5,800,000 $6,150,000
$10,707,552 $11,564,156 $12,489,289 $13,488,432 $14,567,506 $15,732,907 $16,991,539
$0 $0 $0 $0 $0 $0 $0
$6,657,552 $7,164,156 $7,739,289 $8,388,432 $9,117,506 $9,932,907 $10,841,539
$4,547,198 $4,448,377 $4,368,627 $4,304,592 $4,253,384 $4,212,522 $4,179,883
-$55,798,048 -$48,633,892 -$40,894,603 -$32,506,171 -$23,388,665 -$13,455,758 -$2,614,219
-$60,965,650 -$56,517,273 -$52,148,646 -$47,844,054 -$43,590,670 -$39,378,148 -$35,198,265

4 5 6 7 8 9 10
$0 $0 $0 $0 $0 $0 $0
$3,850,000 $4,300,000 $4,750,000 $5,200,000 $5,650,000 $6,100,000 $6,550,000
$7,831,055 $8,809,937 $9,911,179 $11,150,076 $12,543,835 $14,111,815 $15,875,792
$0 $0 $0 $0 $0 $0 $0
$3,981,055 $4,509,937 $5,161,179 $5,950,076 $6,893,835 $8,011,815 $9,325,792
$2,719,114 $2,800,316 $2,913,351 $3,053,330 $3,216,025 $3,397,792 $3,595,496
-$58,220,508 -$53,710,571 -$48,549,393 -$42,599,317 -$35,705,481 -$27,693,667 -$18,367,875
-$61,202,608 -$58,402,293 -$55,488,942 -$52,435,612 -$49,219,587 -$45,821,796 -$42,226,299

Chart Title
Page 3
000,000

000,000
 Cash Flows

Chart Title
000,000

000,000

000,000

000,000

$0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

000,000

000,000

000,000

000,000

000,000

Page 4
 Cash Flows

11 12 13 14 15 16 17
$0 $0 $0 $0 $0 $0 $0
$4,500,000 $4,750,000 $5,000,000 $5,250,000 $5,500,000 $5,750,000 $6,000,000
$17,896,823 $19,686,505 $21,655,156 $23,820,671 $26,202,739 $28,823,012 $31,705,314
$0 $0 $0 $0 $0 $0 $0
$13,396,823 $14,936,505 $16,655,156 $18,570,671 $20,702,739 $23,073,012 $25,705,314
$4,695,505 $4,759,231 $4,824,405 $4,890,238 $4,956,071 $5,021,360 $5,085,659
$5,115,053 $20,051,558 $36,706,714 $55,277,385 $75,980,124 $99,053,136 $124,758,450
-$37,589,192 -$32,829,961 -$28,005,556 -$23,115,318 -$18,159,247 -$13,137,887 -$8,052,228

11 12 13 14 15 16 17
$0 $0 $0 $0 $0 $0 $0
$5,500,000 $5,700,000 $5,900,000 $6,100,000 $6,300,000 $6,500,000 $6,700,000
$18,670,121 $21,097,236 $23,839,877 $26,939,061 $30,441,139 $34,398,487 $38,870,290
$0 $0 $0 $0 $0 $0 $0
$13,170,121 $15,397,236 $17,939,877 $20,839,061 $24,141,139 $27,898,487 $32,170,290
$4,616,047 $4,906,034 $5,196,543 $5,487,576 $5,779,197 $6,071,524 $6,364,720
-$19,521,259 -$4,124,023 $13,815,854 $34,654,915 $58,796,054 $86,694,542 $118,864,832
-$54,863,549 -$49,957,515 -$44,760,971 -$39,273,395 -$33,494,199 -$27,422,675 -$21,057,954

11 12 13 14 15 16 17
$0 $0 $0 $0 $0 $0 $0
$6,500,000 $6,850,000 $7,200,000 $7,550,000 $7,900,000 $8,250,000 $8,600,000
$18,350,862 $19,818,931 $21,404,446 $23,116,802 $24,966,146 $26,963,437 $29,120,512
$0 $0 $0 $0 $0 $0 $0
$11,850,862 $12,968,931 $14,204,446 $15,566,802 $17,066,146 $18,713,437 $20,520,512
$4,153,655 $4,132,301 $4,114,522 $4,099,225 $4,085,500 $4,072,589 $4,059,874
$9,236,643 $22,205,575 $36,410,021 $51,976,823 $69,042,968 $87,756,406 $108,276,918
-$31,044,610 -$26,912,309 -$22,797,787 -$18,698,562 -$14,613,062 -$10,540,473 -$6,480,599

11 12 13 14 15 16 17
$0 $0 $0 $0 $0 $0 $0
$7,000,000 $7,450,000 $7,900,000 $8,350,000 $8,800,000 $9,250,000 $9,700,000
$17,860,266 $20,092,799 $22,604,399 $25,429,949 $28,608,692 $32,184,779 $36,207,876
$0 $0 $0 $0 $0 $0 $0
$10,860,266 $12,642,799 $14,704,399 $17,079,949 $19,808,692 $22,934,779 $26,507,876
$3,806,457 $4,028,385 $4,259,341 $4,497,684 $4,742,043 $4,991,276 $5,244,442
-$7,507,609 $5,135,190 $19,839,588 $36,919,537 $56,728,229 $79,663,008 $106,170,884
-$38,419,842 -$34,391,457 -$30,132,116 -$25,634,432 -$20,892,389 -$15,901,113 -$10,656,671

Page 5
 Cash Flows

17 18 19 20 21

Page 6
 Cash Flows

18 19 20
$0 $0 $0
$6,250,000 $6,500,000 $6,750,000
$34,875,845 $38,363,429 $42,199,772
$0 $0 $2,000,000
$28,625,845 $31,863,429 $37,449,772
$5,148,610 $5,209,925 $5,566,670
$153,384,295 $185,247,724 $222,697,497
-$2,903,618 $2,306,307 $7,872,977

18 19 20
$0 $0 $0
$6,900,000 $7,100,000 $7,300,000
$43,923,428 $49,633,474 $56,085,825
$0 $0 $5,000,000
$37,023,428 $42,533,474 $53,785,825
$6,658,989 $6,954,563 $7,994,920
$155,888,260 $198,421,734 $252,207,559
-$14,398,966 -$7,444,403 $550,518

18 19 20
$0 $0 $0
$8,950,000 $9,300,000 $9,650,000
$31,450,153 $33,966,166 $36,683,459
$0 $0 $1,500,000
$22,500,153 $24,666,166 $28,533,459
$4,046,850 $4,033,115 $4,241,317
$130,777,072 $155,443,238 $183,976,697
-$2,433,748 $1,599,367 $5,840,684

18 19 20
$0 $0 $0
$10,150,000 $10,600,000 $11,050,000
$40,733,860 $45,825,593 $51,553,792
$0 $0 $1,500,000
$30,583,860 $35,225,593 $42,003,792
$5,500,776 $5,759,666 $6,243,596
$136,754,744 $171,980,337 $213,984,129
-$5,155,895 $603,771 $6,847,367

Page 7
 Decision Criterion

Design A Design B Design C Design D

Interest Rate 10.00% 10.00% 10.00% 10.00%
NPV $7,872,977 $550,517.56 $5,840,683.76 $6,847,367.38
EUAW $924,757 $64,664 $686,045 $804,289.20
IRR 10.89% 10.05% 10.77% 10.84%
Payback (in years) 10.62 13.82227445 10.220593146 11.593824938
Discounted Payback 18.56 19.93114158 18.603441308 18.89517251

Page 8