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					                                                     ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                        Introduction
                                                                   Released on 12/18/2002




                                                      ENERGY STAR® CASH FLOW OPPORTUNITY Calculator
                                                         from the US Environmental Protection Agency.

                                      This spreadsheet is designed to work with Microsoft Excel 97 or later versions. It
                                        may not work properly with earlier versions. It is best viewed with 1024x768
                                                                     pixels resolution.




                                                                                             ENERGY STAR®
                                                                                               CASH FLOW
                                                                                             OPPORTUNITY

                                                                                Version 1.1

                          Please send any comments to Katy Hatcher, ENERGY STAR National Manager, Public Sector at Hatcher.Caterina@epamail.epa.gov.


                                                                                                                                          Important Notice




                                                  As the numbers that you will use in the calculator are your own estimates,
                                          ENERGY STAR® does not guarantee that your project will generate the results presented herein.                      Printed on 12/26/2010
68ae60c0-d170-44d9-b78c-5a6505c6129d.xls/Intro                              See full disclaimer.                                                                      Page 1 of 11
                                                       ENERGY STAR CASH FLOW OPPORTUNITY Calculator
                                                                       Instructions




                                                                                                                                 ENERGY STAR®
                                                                                                                                   CASH FLOW
                                                                                                                                 OPPORTUNITY
                                                                                                           CFO Calculator Version 1.1 Instructions



 IMPORTANT NOTICE:

 The macros imbedded in the spreadsheets must be enabled in order to use this calculator. To enable the macros, please click o n Tools \
 Macro \Security Level and select the "medium" (recommended) or "low" security level. Note that you need to close all Excel appli cations
 after enabling the macros. You must click on "Enable Macros" when prompted by the program upon opening. CAUTION: Macros may
 carry harmful programming codes. Do not enable macros from sources you do not trust.

 ENERGY STAR® does not guarantee that your project will generate the results presented herein. An investment grade audit performed by
 a qualified engineering organization is required to determine the actual size of your savings opportunity.

 This spreadsheet is designed to work with Microsoft Excel 97 or later versions. It may not work properly with earlier version s. It is best
 viewed with 1024x768 pixels resolution.

 HOW TO USE THIS WORKSHEET
 This spreadsheet is designed to help decisionmakers address three critical questions about installing energy efficiency proje cts:
 · How much new energy efficiency equipment can be purchased from the anticipated savings?
 · Should this equipment purchase be financed now or is it better to wait and use cash from a future budget?
 · Is money being lost by waiting for a lower interest rate?

 Section 1 -- Data Entry Tab
 This is where basic information about your organization is entered: the square feet under your management and energy costs (E lectricity, Natural
 Gas, Steam, Chilled Water, Fuel Oil [No.1], Fuel Oil [No.2], Fuel Oil [No.5], Fuel Oil [No.6], Coal [anthracite], Coal [bitum inous], Coke, Diesel [No.2],
 Propane, Liquid Propane, Kerosene, Wood, and Other). You can choose between two alternative methods to enter the organizatio n’s data. To
 switch between approaches, please use the drop down menu on this tab under the “Select Scenario” section. You may populate t his model with the
 sample values by clicking on the “Sample Values” menu. Yellow cells indicate that data entry is required; these cells will c hange to white after data
 have been entered. CAUTION: Any user-entered data will be lost when selecting the sample values.

 “First Approximation” -- A Simplified General Approach
 This approach was developed to give organizations a general picture of how much new energy efficiency equipment may be buried in their existing
 utility bills, which could be installed without increasing existing capital or operating budgets. First Approximation asks t he organization for a
 percentage of the buildings that are either in better (Group A) or worse (Group B) shape in terms of energy efficiency. The following steps and
 information will be required to complete this worksheet successfully and move on to the next tab.
 1. Enter the name of your organization.
 2. When entering total square feet under your management for each group, include office type and other public buildings, excludi ng process facilities
 like waste and water treatment, manufacturing, etc.
   a. Enter total square footage for Group A in Cell D7 and your best estimate of utility costs in Cell E7 for these facilities. G roup A represents well-
 designed and well-equipped buildings with significant amounts of energy-efficient equipment (lighting, HVAC, controls, etc.). The cost per square
 foot will automatically be calculated. Usually buildings that cost less than $1.00/SF can be considered Group A buildings.
   b. Enter the total square footage for Group B in Cell D8 and your best estimate of utility costs in Cell E8 of facilities that a re less energy efficient
 compared with Group A buildings. Usually buildings that cost more than $1.00/SF can be considered Group B buildings.
 3. The Savings Target is your best estimate of typical savings. Fifteen percent is used as the default value for buildings in G roup A and 30 percent
 for buildings in Group B; but if you think the upgrades would improve energy efficiency even more, then you may change the ta rget at any time.
 Many organizations find that 20 percent savings can be obtained through behavioral modifications and consider 20 to 35 percen t as a realistic
 overall target.

 “Quartile-Based” Approach -- The Benchmarking Approach
 Using the results from ENERGY STAR's benchmarking tool, this approach breaks the data into four quadrants in terms of energy consumption: high
 energy consumers are grouped in the bottom quartile (4th Quartile), the third group is below average (3rd Quartile), the seco nd group is above
 average (2nd Quartile), and the top group (Top Quartile) consists of the best performing buildings. The Quartile -based method is a more detailed
 approach. It requires organizations to enter four sets of data instead of the two sets in the First Approximation approach. If you have benchmarked
 your buildings, use this tab to enter the results into the corresponding quartiles. If you have not completed the benchmarki ng exercise, you can
 enter your best guess for square footage and cost per square foot for each quadrant.

 1. Enter the name of your organization.
 2. When entering total square feet under your management for each quadrant, include space type, excluding process facilities lik e waste and water
 treatment, etc.
   a. Enter total square footage (Cells D7 through D10) and the data from your benchmarking results or your best estimates of en ergy costs (all
 applicable energy costs) for each quadrant in Cells E7 through E10. Classification of performance is as follows:
 ▪ Top Quartile: top performers (75% energy efficient or greater)




                                                                   ENERGY STAR® does not guarantee that                             Printed on 12/26/2010 12:25 AM
68ae60c0-d170-44d9-b78c-5a6505c6129d.xls/Instructions project will generate the results presented herein. See full disclaimer.
                                                   your                                                                                                Page 2 of 11
                                                       ENERGY STAR CASH FLOW OPPORTUNITY Calculator
                                                                       Instructions




                                                                                                                                 ENERGY STAR®
                                                                                                                                   CASH FLOW
                                                                                                                                 OPPORTUNITY
                                                                                                           CFO Calculator Version 1.1 Instructions
 applicable energy costs) for each quadrant in Cells E7 through E10. Classification of performance is as follows:
 ▪ Top Quartile: top performers (75% energy efficient or greater)
 ▪ 2nd Quartile: average performers (between 50-74%)
 ▪ 3rd Quartile: poor performers (between 25-49%)
 ▪ 4th Quartile: worst performers (below 25% efficient)
   b. The Savings Target is your best estimate of typical savings. The default values are 10 percent, 20 percent, 30 percent, and 40 percent,
 respectively; however, if you think your anticipated upgrades would result in savings different from these estimates, you may change them at any
 time. Again, many organizations find 20 to 35 percent a realistic and reachable objective.

 Section 2 -- Investment Values Tab
 The top section restates the amount of your utility bill that has been allocated to the building types and restates the estim ated savings that could be
 used to pay for energy efficiency upgrades.

 This worksheet operates like a “reverse financial calculator” and will help you estimate the amount of equipment that could b e financed with the
 future energy savings.

 1. In the “Assuming an interest rate of” Cell F10, enter the interest rate at which you think you might readily obtain financing . This could be a tax-
 exempt lease-purchase agreement, a loan, or equivalent. The actual rate will depend on your credit rating, dollar amount, and t erm of the
 transaction. If you are not sure, a safe estimate in today’s market (December 2002) ranges from 3½ percent to 5½ percent for the public sector and
 from 5½ percent to 10 percent for the private sector.
 2. In the “Assuming a term of” Cell F11, enter the financing term that you think will be acceptable to your organization and a l ender. Typically this is
 between 7 and 10 years and will be determined by the useful economic life of the equipment installed. The financing term sho uld be longer than the
 simple payback of the equipment to generate a positive cash flow.

 3. In the “Savings used to pay energy investments” Cell F12, enter the percentage of the savings you would be willing to commit to cover the cost of
 financing these energy efficiency improvements. If you are working with an Energy Services and Products Provider, you may be able to obtain a
 guarantee that these savings will be realized, allowing you to use a higher percentage of the projected savings. The percent age you choose
 depends on the type of equipment installed, the savings realized, political environment, etc. Most organizations use between 85 percent and 95
 percent.

 Push the “Calculate” button to determine the amount of money that is buried in your utility bill, based on the estimates stat ed above, which then
 appears in red (Cell E15). Bear in mind that an investment grade audit done by a qualified engineering company will be requir ed to determine the
 actual size of your opportunity. The cost of this audit can normally be included in the financing and recovered through the savings.

 The simple payback is also calculated at the bottom of the worksheet.
 NOTE: The "Use Sample Values" button will reset the calculator to the sample values in Cells F10 through F12.

 Now that you know how much equipment may be acquired, the next step involves the timing. It is true that interest payments c an be avoided
 altogether by including these energy projects in future capital or operating budgets. However, paying interest is not always bad, as long as borrowed
 funds are put to productive use. A discounted cash flow analysis will help determine whether deferring the installation or f inancing the installation
 today is the better business decision. Often, the energy efficiency savings lost in one year exceed the total amount of the financing costs throughout
 the entire financing period.

 Section 3 -- Cash Flow Projection Tab
 This spreadsheet helps quantify your decision on whether it is a better to “pay as you go” and wait until funds are available in future budgets or
 finance an energy efficiency project immediately using a third-party lender.

 In the top left section, the Project cost, Interest rate, and Financing term are imported from the “Investment Values” worksh eet. The Simple payback
 of the equipment to be installed (the time it takes to recover the project cost from savings, NOT including financing costs) is carried forward and
 entered into Cells G5 (years) and G6 (months). In the line Year(s) postponed (Cell G9), enter the number of years the projec t will be delayed by
 deferring it for inclusion in a future budget; for example, if the project will be included in next year’s budget, use the nu mber “1.” You can modify all
 these numbers by overwriting them, or start from scratch by clicking on the "Use Investment Values” button.

 The tables at the bottom represent the cash flow consequences of the two choices: Option A -- installing today using financing or Option B --
 deferring the installation until funding becomes available in a future year’s budget. The calculator allows up to 12 years o f cash flows to be




                                                                   ENERGY STAR® does not guarantee that                             Printed on 12/26/2010 12:25 AM
68ae60c0-d170-44d9-b78c-5a6505c6129d.xls/Instructions project will generate the results presented herein. See full disclaimer.
                                                   your                                                                                                Page 3 of 11
                                                       ENERGY STAR CASH FLOW OPPORTUNITY Calculator
                                                                       Instructions




                                                                                                                                 ENERGY STAR®
                                                                                                                                   CASH FLOW
                                                                                                                                 OPPORTUNITY
                                                                                                           CFO Calculator Version 1.1 Instructions
 deferring the installation until funding becomes available in a future year’s budget. The calculator allows up to 12 years o f cash flows to be
 discounted back to their Net Present Values for each of these options (Cells G30 and K30), using the Interest Rate stated in Cell G7 as the discount
 rate for both options. Whichever option generates the most present value dollars is the better financial decision.

 The graph at the top right is a visual representation of the cash flow impact of deferring the installation versus financing it now. It poses the
 question: Should you write a big check and slowly “fill in the hole” with the savings over time or use third -party financing now to level out the project’s
 cash flow.

 This spreadsheet allows you to do “what if” calculations by changing the paybacks, interest rates, and terms to ensure that y our financed energy
 efficiency project always generates positive cash flow. We urge you to start with the maximum financing term your organizati on finds acceptable
 and then experiment with the average simple paybacks to leverage the energy savings fully. Slow and fast payback projects sh ould be blended to
 obtain this average number.

 Section 4 -- Cost of Delay Tab
 If the prior calculation confirmed that it is a better decision to finance and install now rather than wait for the availabil ity of funds in a future budget,
 the next most frequently asked question is: Should we wait for a lower interest rate (like a bond) or finance it now at a sli ghtly higher rate? Intuitively,
 lower interest rates imply a “better deal.”

 However, lower interest rates are not always the best deal. When comparing bond interest to alternative funding, additional considerations need to
 be addressed:

   a) Are there any additional fees or closing costs associated with each financing alternative? For example, bonds require extens ive (and expensive)
 legal opinions, insurance, etc. For public sector organizations, tax -exempt lease-purchase agreements have few additional costs, but the interest
 rate may appear to be a little higher.
   b) Alternative financing may be immediately available. Floating a bond typically is a slow process.
   c) Public sector General Obligation bonds typically require voter approval. Some alternative financing choices may be treated a s non-capital
 budget events (i.e., tax-exempt lease-purchase agreements and performance contracts). Asking the voters to approve any expendit ure (including
 profitable ones) may add both real and political costs to the decision.
   d) Opportunity costs. By definition, delays in installing energy efficiency projects mean that the utility bills are higher tha n need be. Once paid to
 the utility, these dollars, which could be used to pay for the financing costs, are lost forever.

 The question becomes: At what point is paying a higher interest rate a better financial decision than waiting for the lower c ost financing? The “Cost
 of Delay” worksheet helps quantify this question by factoring in the energy opportunity costs.

 Readily available financing means that the project can be installed immediately. The longer you wait, the more energy effici ency dollars are being
 lost. Holding out for a lower interest rate is often an expensive decision.

 The worksheet algorithm calculates the financial impact of waiting versus taking a faster alternative with a higher interest rate.
   a) Enter the interest rate of the immediately available financing in Cell G4.
   b) Enter the interest rate of the “lower financing” in Cell G5 (lower than the number entered in Cell G4.)
   c) Simple Payback values (How long it takes for the project to pay for itself EXCLUDING financing costs) are copied automaticall y from the
 "Investment Values" tab, but you can enter your own values. Payback values can be entered in years and months.

 The "Lower rate interest savings" (Cell G11) calculates the present value benefit of entering into one interest rate financin g versus another.
 Assuming equal borrowing terms and starting dates, it computes how much money the lower interest rate financing will save ove r the higher interest
 rate. Because the energy opportunity losses will accrue every month the installation is delayed, a "Break -Even Point" can be calculated by dividing
 the present value benefit of the lower interest rate by the dollars lost every month the installation is delayed. The Break -Even Point (Cell G12) is
 expressed in months and basically confirms how long one can wait before the lower interest rate costs more in real dollars. Once past the break-
 even point, the lower interest rate becomes the more expensive alternative. Note the cost of waiting for one year (Cell M17) and compare this to the
 original project cost (Cell G6). These opportunity losses may represent a substantial percentage of the project cost (Cell G 14).

 Section 5 -- Summary Tab
 This calculator automatically prepares a report containing all the salient spreadsheet data. Click the "Print" button to pri nt a copy of this report.

 RELATED LINKS
 ENERGY STAR Portfolio Manager




                                                                   ENERGY STAR® does not guarantee that                              Printed on 12/26/2010 12:25 AM
68ae60c0-d170-44d9-b78c-5a6505c6129d.xls/Instructions project will generate the results presented herein. See full disclaimer.
                                                   your                                                                                                 Page 4 of 11
                                                       ENERGY STAR CASH FLOW OPPORTUNITY Calculator
                                                                       Instructions




                                                                                                                                 ENERGY STAR®
                                                                                                                                   CASH FLOW
                                                                                                                                 OPPORTUNITY
                                                                                                           CFO Calculator Version 1.1 Instructions
 RELATED LINKS
 ENERGY STAR Portfolio Manager
 ENERGY STAR developed portfolio manager to help businesses continually track and compare energy use, which is critical to suc cessful energy
 management. Portfolio manager also provides a comparative 1-to-100 rating of energy use for the following:
 · Office Buildings
 · K-12 Schools
 · Grocery Stores
 · Hotels
 · Hospitals

 Portfolio manager URL:
 http://estar3.energystar.gov/pls/portfolio/Pm_Main.Login

 If you would like to find out if your buildings are eligible for benchmarking, please visit
 http://www.energystar.gov/index.cfm?c=eligibility.bus_portfoliomanager_eligibility

 If you have already benchmarked your buildings, aggregate your data from the EPA ENERGY STAR benchmarking tool into quartiles and enter
 them into this Cash Flow Opportunity Calculator (Enter total square feet and total utility expenditures for each quartile in the Data Entry worksheet).

 Internet Presentations
 You can join one of our “Money for Your Energy Upgrades” Internet presentations to learn more about this topic. Please visit
 http://www.energystar.gov/index.cfm?c=business.bus_internet_presentations for more information.

 IMPORTANT NOTICE & CONTACT INFORMATION
 This calculator, like all of ENERGY STAR's products and services, is available as a public service. EPA makes no representat ions of its accuracy,
 only of its intention. Should you have any comments, we kindly request that you notify:

 Katy Hatcher, ENERGY STAR National Manager, at Hatcher.Caterina@epamail.epa.gov.




                                                                   ENERGY STAR® does not guarantee that                             Printed on 12/26/2010 12:25 AM
68ae60c0-d170-44d9-b78c-5a6505c6129d.xls/Instructions project will generate the results presented herein. See full disclaimer.
                                                   your                                                                                                Page 5 of 11
                                                        ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                           Data Entry




FIRST APPROXIMATION DATA ENTRY TABLE

                    Name         Enter your organization's name here

       Select Scenario           First Approximation
                                 FIRST APPROXIMATION

        Sample Values

                                                          Annual Energy
                                                         Costs ($) - All Fuel                                                     Potential Annual
                                          SF                   Types                     $/SF           Savings Target (%)            Savings           Buildings cost

                 Group A                   0                       0                     0.00                     0.0                     $0            LESS than $1.00 /SF to operate

                 Group B                   0                       0                     0.00                     0.0                     $0            MORE than $1.00 /SF to operate



                                                         Total Energy Cost                               Weighted Savings   Total Potential
                                       Total SF          ($) - All Fuel Types            $/SF               Target (%)    Annual Savings ($)

                                           0                       0                     0.00                   0.00%                      0




   ENERGY STAR® does not guarantee that your project will generate the results presented herein. An investment grade audit performed by a qualified engineering organization is required to
                                                                  determine the actual size of your savings opportunity.




                                                                                                                                                        Printed on 12/26/2010 12:25 AM
68ae60c0-d170-44d9-b78c-5a6505c6129d.xls / Data Entry                                                                                                                      Page 6 of 11
                                                                   ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                                   Investment Values




   FIRST APPROXIMATION INVESTMENT OPPORTUNITY

                                                                                      Group A                     Group B                                           Total Utility Bill
                        Annual Utility Bills                                              $0                        $0                                                      $0
              Annual Potential Savings                                                    $0                          $0                                                     $0
                                                              Potential Annual Savings = Cash Flow Opportunity

         Use Sample Values
                                                                What Can This Annual Cash Flow Buy?
                            Assuming an interest rate of                                               0.00                           %                   You may change these values anytime.
                                                                                                                                                            If you would like to see the sample
                                        Assuming a term of                                               0                             Year(s)            values, please click on the Use Sample
            Savings used to pay energy investments                                                       0                            %                               Values button.



       Taken from operating funds, these savings could                                                                                without increasing today's capital and operating
                      finance energy projects equal to:                                               $0                              budgets.


           Contribution that your operating budget can make                                                                                              Median project investment ranges between
                               towards energy improvements
                                                                                                    $0.000                            /SF
                                                                                                                                                         $1 - 3/ft2.*

                                                                                                        0                             Year(s)            Consider blending short- and long-term
                                                       Simple Payback
                                                                                                                                                         projects to maximize use of the savings.
                                                                                                        0                             Month(s)
   *Market Trends in the U.S. ESCO Industry: Results from the NAESCO Database Project (http://www.naesco.org/ESCO_Mkt_Trends_final.pdf), May 2002                                 Important Notice




                                                           As the numbers that you will use in the calculator are your own estimates,
                                                 ENERGY STAR® does not guarantee that your project will generate the results presented herein.                              Printed on 12/26/2010 12:25 AM
68ae60c0-d170-44d9-b78c-5a6505c6129d.xls/Investment Values                           See full disclaimer.                                                                                      Page 7 of 11
                                                                                  ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                                                 Cash Flow Projection




     FIRST APPROXIMATION CASH FLOW OPPORTUNITY
           Click this button if you would like to transfer values
                                                                    Use Investment
         from Investment Values page. Year(s) postponed is
                                                                        Values                                                                  Cumulative Cash Flow Impact Comparison
                                         given as one (1) year.                                                             $1

                                     Project cost                           0                $                              $1

                                                                            0                years                          $1
                              Simple payback
                                                                                                                            $0                                                                                       Year
                                                                            0                month(s)

                                                                                                                            $0
                                     Interest rate                         0.00              %

                                                                                                                            $0
                               Financing term                               0                years
                                                                                                                                    1      2         3    4       5      6    7    8     9       10    11      12

                         Year(s) postponed                                  0                                                                                 Option A             Option B



                                                   Option A (Fast Track Financing)                                                                              Option B (Waiting for Cash)

       Year         Savings                      Cost                Annual Cash Flow            Cumulative Cash Flow              Savings                    Cost            Annual Cash Flow        Cumulative Cash Flow

          0                       $0                        $0                          $0                             $0                       $0                       $0                   $0                             $0
          1                       $0                        $0                          $0                             $0                       $0                       $0                   $0                             $0
          2                       $0                        $0                          $0                             $0                       $0                       $0                   $0                             $0
          3                       $0                        $0                          $0                             $0                       $0                       $0                   $0                             $0
          4                       $0                        $0                          $0                             $0                       $0                       $0                   $0                             $0
          5                       $0                        $0                          $0                             $0                       $0                       $0                   $0                             $0
          6                       $0                        $0                          $0                             $0                       $0                       $0                   $0                             $0
          7                       $0                        $0                          $0                             $0                       $0                       $0                   $0                             $0
          8                       $0                        $0                          $0                             $0                       $0                       $0                   $0                             $0
          9                       $0                        $0                          $0                             $0                       $0                       $0                   $0                             $0
         10                       $0                        $0                          $0                             $0                       $0                       $0                   $0                             $0
         11                       $0                        $0                          $0                             $0                       $0                       $0                   $0                             $0

               Net Present Value of Option A                                                                          $0     Net Present Value of Option B                                                                  $0

                               For purposes of this calculation, all cash flows are being discounted at the interest rate indicated in cell G7 - financing paid monthly in arrears.


                                                                                                                                                                                                             Important Notice



                                                                                 As the numbers that you will use in the calculator are your own estimates,
                                                                         ENERGY STAR® does not guarantee that your project will generate the results presented herein.                                 Printed on 12/26/2010 12:25 AM
68ae60c0-d170-44d9-b78c-5a6505c6129d.xls/Cash Flow                                                         See full disclaimer.                                                                                           Page 8 of 11
                                                    ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                      Cost of Delay




FIRST APPROXIMATION COST OF DELAY
                                                                 Use Cash Flow
Comparative Interest Rate Analysis                                  Values                                             Balance at        Amount lost in
                                                                                                                      beginning of       monthly utility    Balance at end
                Interest rate of immediate financing                     0.00              %             Month           month               bills            of month
                   Interest rate of a lower financing                    0.00              %
                                                                                                                                                                                   $0




                               Cost of the equipment                      $0                                1               $0                 $0                   $0

                                                                           0               year(s)          2               $0                 $0                   $0
                                      Simple payback
                                                                           0               month(s)         3               $0                 $0                   $0

                            Potential annual savings                      $0                                4               $0                 $0                   $0

                                    Term of financing                      0               year(s)          5               $0                 $0                   $0

                         Lower interest rate savings                      $0                                6               $0                 $0                   $0

                           Amount lost in utility bills                   $0               / month          7               $0                 $0                   $0

                            Break-Even Point                             0.0               month(s)         8               $0                 $0                   $0

            Opportunity cost if delayed 12 months*                       0.0%                               9               $0                 $0                   $0

*The opportunity cost is 12 months of lost savings divided by the original project cost.                    10              $0                 $0                   $0

                                                                                                            11              $0                 $0                   $0
 To see values from the Cash Flow worksheet, click the Use Cash Flow Values button above. To
       close the spreadsheet, click the Save & Exit button on the CFO Calculator toolbar.                   12              $0                 $0                   $0

                                                                                                                                                            Important Notice




                                                     As the numbers that you will use in the calculator are your own estimates,
                                         ENERGY STAR® does not guarantee that your project will generate the results presented herein.                     Printed on 12/26/2010
68ae60c0-d170-44d9-b78c-5a6505c6129d.xls/Cost of Delay                         See full disclaimer.                                                                 Page 9 of 11
                                           ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                          Summary of Results




                                                                                                                                ENERGY STAR®
                                                                                                                                  CASH FLOW
                                                                                                                                OPPORTUNITY
                                                                                                              CFO Calculator Version 1.1
FIRST APPROXIMATION SUMMARY of FINANCIAL CALCULATIONS

                           Name: Enter your organization's name here
               Select Scenario: FIRST APPROXIMATION

This information has been generated by a spreadsheet developed by ENERGY STAR. It helps address three critical questions about installing energy
efficiency projects:
      -How much new energy efficiency equipment can be purchased from the anticipated savings?
      -Should this equipment purchase be financed now or is it better to wait and use cash from a future budget?
      -Is money being lost by waiting for a lower interest rate?
1. How much energy efficiency equipment can be purchased?
     This section reflects the cost per square foot by building category, as follows:

                                                         Annual Energy
                                                        Costs ($) - All Fuel                                      Potential Annual
                                            SF                Types              $/SF        Savings Target (%)       Savings           Buildings cost

                          Group A            0                  $0              $0.00                0.0                $0              LESS than $1.00 /SF to operate


                          Group B            0                  $0              $0.00                0.0                $0              MORE than $1.00 /SF to operate




                                                        Total Energy Cost                     Weighted Savings   Total Potential
                                     Total Square Feet ($) - All Fuel Types      $/SF            Target (%)    Annual Savings ($)

                             Total           0                  $0              $0.00              0.00%                $0




Redirecting funds from the existing utility budget by the “Savings Target” number, will free up about                                $0
per year, which then can be used to finance the energy efficiency projects.

Our estimates indicate that, by using 0% of estimated savings and assuming financing costs of 0% (interest) over 0 years, the energy dollars saved
can pay for:

                                  $0                                                     that is                                            $0.00 /SF
worth of equipment, with a simple payback of 0 years and 0 month(s). Note that these funds are from existing operating (utility) budgets and not
from the capital budget.
2. Finance now or wait to include in a future budget?
Installing the equipment today means that the savings begin to accrue immediately. As long as the financing costs are lower than the energy
savings, positive cash flow will be created.
        Target Annual Savings: $0                                  Annual Financing Cost: $0                                           Net Cash Flow: $0

Energy efficiency opportunity losses in energy projects in one year frequently exceed the total amount of the interest expense throughout the entire
financing period.

Savings lost to 1 year delay:        $0




                                                 As the numbers that you will use in the calculator are your own estimates,
                                       ENERGY STAR® does not guarantee that your project will generate the results presented herein.            Printed on 12/26/2010 12:25 AM
68ae60c0-d170-44d9-b78c-5a6505c6129d.xls/Summary                           See full disclaimer.                                                                   Page 10 of 11
                                           ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                          Summary of Results




                             Cumulative Cash Flow Impact Comparison
   $1
   $1
   $1
   $1
   $1
   $1
   $0                                                                                        Year
   $0
   $0
                                                                                                                This graph reflects the cumulative cash flow impact
   $0
                                                                                                                of financing the project now (Option A), versus
   $0                                                                                                           waiting until the funding is available in a future
           1      2      3      4      5        6    7      8       9       10    11    12                      budget (Option B).

                                     Option A                   Option B


A discounted cash flow analysis of these options shows the following:

If you finance now (Option A), the net present value of the project after 12 years is:                                                                 $0

If you defer the installation for 0 year(s) (Option B), the net present value of the project after 12 years is:                                        $0



3. Waiting for a better interest rate
Time is money, and energy efficiency projects allow us to quantify this statement.


The interest rate is always a primary consideration when comparing financing options. However, when opportunity losses (lost energy savings) are
accruing, the speed with which funds can be accessed plays a critical role in determining which financing rate is an expensive decision.

This calculation quantifies the financial benefit of the lower interest rate in Present Value dollars and then divides this benefit by the monthly
opportunity losses. The result is the number of months one can wait before the lower interest rate costs more real, Present Value dollars (the
“Break-Even Point”). Once you pass the break-even point, the lower interest rate option becomes the more expensive transaction. For example,


                                                    Interest rate of available financing:            0.00             %

                                                           Interest rate of a better deal:           0.00             %

                                                                                                      0               years
                                                                  Simple payback period:
                                                                                                      0         month(s)

                                                                           Break-even point :        0.0        month(s)


In this case, the lower interest rate will become more expensive after 0 month(s).

A 12-month delay waiting for the lower interest rate will cost about:                           $0                                 which is equal to
0% of the total project cost.



Important Notice:

This spreadsheet is a first step in estimating your energy efficiency opportunity and will help you determine whether or not pursuing these savings is
a good business decision. It is an “estimator” and is not intended to provide exact, to the penny calculations.

Our algorithms have been tested and will generate accurate estimates, as long as the data entered are accurate. An investment grade audit done
by a qualified engineering company will be required to determine the actual size of your opportunity.
The cost of this audit can normally be included in the financing and recovered through the savings. Higher level audits may be provided by qualified
Service and Product Providers, or in some cases, your state energy office.


Please send any comments to Katy Hatcher, ENERGY STAR National Manager, Public Sector at Hatcher.Caterina@epamail.epa.gov.




                                                 As the numbers that you will use in the calculator are your own estimates,
                                       ENERGY STAR® does not guarantee that your project will generate the results presented herein.         Printed on 12/26/2010 12:25 AM
68ae60c0-d170-44d9-b78c-5a6505c6129d.xls/Summary                           See full disclaimer.                                                                Page 11 of 11

				
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