Using the previous examples find the Total Annual Cash Flow and the Present Total Value, complete the 5th and 6th columns.

Using the Present Total Value over the 10 year cycle calculate the ROI. Use a 15% discount rate.

Practice Problem Instructions: Name: 1. Print out the problem. 2. Using the previous examples find the Total Annual Cash Flow and the Present Total Value and complete the complete the 5 and 6 columns. 3. Using the Present Total Value over the 10 year cycle calculate the ROI. Use a 15% discount rate. Cash Flows in Year of Occurrence Energy Saving Present Value Total Annual Year (n) Install Cost Escalation Rate 5%/ year Repair and Maintenance Escalation Rate 5%/ year (-) . (500) Total Annual Cash Flow (-) Discount Rate 15% (30.000) 0 (30,000) (30,000) 5 7.500 7.875 8.269 8.682 9.116 9,572 10,051 10.553 11,081 11.635 (xxx) (xxx) (xxx) (xox) (xox) (xox) 7 . 10 - Net Present Value of Life-Cycle Cash Flows ($) ROI = ! Year o represents the purchase/equipment start-up date. Total Annual Cash Flow - the cash amount is always in the year it occurs dollars. Present Value - Puture Value Practice Problem Instructions: Name: 1. Print out the problem. 2. Using the previous examples find the Total Annual Cash Flow and the Present Total Value and complete the complete the 5 and 6 columns. 3. Using the Present Total Value over the 10 year cycle calculate the ROI. Use a 15% discount rate. Cash Flows in Year of Occurrence Energy Saving Present Value Total Annual Year (n) Install Cost Escalation Rate 5%/ year Repair and Maintenance Escalation Rate 5%/ year (-) . (500) Total Annual Cash Flow (-) Discount Rate 15% (30.000) 0 (30,000) (30,000) 5 7.500 7.875 8.269 8.682 9.116 9,572 10,051 10.553 11,081 11.635 (xxx) (xxx) (xxx) (xox) (xox) (xox) 7 . 10 - Net Present Value of Life-Cycle Cash Flows ($) ROI = ! Year o represents the purchase/equipment start-up date. Total Annual Cash Flow - the cash amount is always in the year it occurs dollars. Present Value - Puture Value