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




                                               CASH FLOW OPPORTUNITY CALCULATOR
                                                                              Version 2.0 - 2010 - BETA VERSION

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




                                                      Developed by The Cadmus Group, Inc. and Catalyst Financial Group, Inc.,
                                                                     under contract with the U.S. EPA, 2009


          IMPORTANT NOTICE: The macros imbedded in this spreadsheet must be enabled to use this calculator. To enable the macros using Microsoft Excel 2000, 2002, or 2003, please click on Tools >
          Macro > Security Level and select the "medium" (recommended) or "low" security level (not recommended as this "low" macro security option enables macros without giving you the option to
          enable/disable the macros). If you are using Microsoft Excel 2007, click Developer > Macros and select “Disable all macros with notification” option. Note that you will need to close all Excel
          applications after enabling the macros and reopen this worksheet. You must enable macros if and when prompted by the program upon opening. CAUTION: Macros in other spreadsheets may
          carry harmful programming codes. Do not enable macros from sources you do not trust.


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

          DISCLAIMER: 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.




                                                   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 7/18/2011
74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Intro                               See full disclaimer.                                                                                                            Page 1 of 16
                                                          ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                            Instructions




ENERGY STAR
CASH FLOW OPPORTUNITY CALCULATOR v2.0
INSTRUCTIONS

HOW TO USE THIS WORKSHEET
The purpose of this spreadsheet is to help decision-makers quantify the costs of delaying an energy efficiency project by addressing three critical questions:

- 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?

The Cash Flow Opportunity Calculator spreadsheet is easy to use, intuitive, and follows the logic outlined above. It consists of 6 worksheets, including four data
tabs, an instructions tab, and a summary report tab. Each data tab addresses a specific calculation, the results of which are used in subsequent worksheets. Note
that the data entry tabs can be used independently, should you wish to use only one of the four calculations. A description of each of the data and summary
report tabs follows:

“Data Entry” Tab—The purpose of this tab is to estimate the amount of energy waste (or potential savings) buried in your utility bills. This amount is calculated
in dollars rather than kWh or therms. This amount becomes the cornerstone of the subsequent spreadsheet calculations. You will need to know the amount of
your current “energy spend” (utility bills). This tool can be personalized to identify the project(s) being analyzed by entering your organization’s name and
specifying the projects being evaluated.

Because energy is measured in different ways by different organizations, this tab presents a variety of profiles found in the “Type of Analysis” window (ROW 5) in
an effort to offer a selection of profiles that best suits your organization. On the “Type of Analysis” window, choose the description that best fits your project.
The “User Generated Categories” is a simple generic option that provides two category ROWs and the ability to create any labels you wish that best describe the
projects (i.e., individual addresses or groups of properties). The “Benchmark Results from EPA's Portfolio Manager” option allows you to input the data directly
from ENERGY STAR’s Portfolio Manager. “Green Building Categories” uses the categories directly from LEED® EB. “Water or Wastewater Treatment Plants”
allows you to input data based on million gallons per day, and “By Efficiency Project Type” is technology-driven (Lighting, Heating and Cooling, Retro-
commissioning, etc.) and “Manufacturing Facility” allows you to input data based on production, such as pounds of product. In all instances, you can overwrite
the category names to best describe your project.




                                                                             ENERGY STAR® does not guarantee that                                      Printed on 7/18/2011 7:22 PM
  74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Instructions    your project will generate the results presented herein. See full disclaimer.                                Page 2 of 16
                                                          ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                            Instructions


Estimate the percentage of the energy savings that will be realized by the energy efficiency project to be applied against your utility bills. These savings can be
leveraged by financing the project; this number becomes the “source of repayment” and is used in the next tab.

“Investment Values” Tab—This tab is like a ¨reverse financial calculator.¨ It uses the savings estimate from the Data Entry Tab to calculate the amount of
equipment and services that could be installed and paid for using only your current and future energy savings.

“Cash Flow” Tab—Here you compare the cash flow consequences of two decision points: (1) installing the energy project now and using future energy savings to
cover the financing costs versus (2) postponing the installation until funds become available in a future budget. Whichever decision generates the larger Net
Present Value is generally accepted to be the better financial decision. The results of this comparison are often counter-intuitive.

“Interest Rates” Tab—The financing that offers the lowest interest rate is not always the best deal. The lowest rate offering may not be immediately available
(typically the case with most bonds and revolving loan funds). This tab allows you to compare two different interest rate offerings by adding the impact of the
cost of delaying the installation (lost savings opportunity) caused by waiting for the lower interest rate financing. This helps calculate how long you should wait
for a lower interest rate offering before the lower interest rate becomes the more expensive financing option.

“Summary” Tab—This tab generates a report that includes all of the information covered in the data tabs.
If you are interested in showing only one tab's results, you can use the Excel’s “Print” function to print any one page of interest rather than printing the entire
report.
For more sheet specific instructions, please click the Help button on each tab to open the Help section under each page.

ADDITIONAL INFORMATION
ENERGY STAR Portfolio Manager
EPA developed Portfolio Manager to help businesses continually track and compare energy use for all facility types, which is critical to successful energy
management. Portfolio Manager also provides a comparative 1-to-100 rating of energy use for the following facility types:

Bank/Financial Institutions
Courthouses
Hospitals (acute care and children’s)
Hotels and Motels
House of Worship
K-12 Schools
Medical Offices
Offices




                                                                             ENERGY STAR® does not guarantee that                                        Printed on 7/18/2011 7:22 PM
  74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Instructions    your project will generate the results presented herein. See full disclaimer.                                  Page 3 of 16
                                                          ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                            Instructions
Offices
Residence Halls/Dormitories
Retail Stores
Supermarkets
Warehouses (refrigerated and non-refrigerated)
Wastewater Treatment Plants

To find out more about Portfolio Manager, please visit www.energystar.gov/benchmark.
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 view one of our self-guided 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 the ENERGY STAR program's products and services, is available as a public service. EPA makes no representations 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@epa.gov.




                                                                             ENERGY STAR® does not guarantee that                                       Printed on 7/18/2011 7:22 PM
  74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Instructions    your project will generate the results presented herein. See full disclaimer.                                 Page 4 of 16
                                                          ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                            Instructions




DETAILED INSTRUCTIONS

Section 1—Data Entry Tab
This tab is where you enter basic information about your organization. The objective is to estimate the potential annual energy savings based on a simple
evaluation of your organization’s profile. Note that yellow CELLs require data/information, which you provide, while blue CELLs contain formulas, which cannot
be overwritten.
1) Enter the name of your organization in CELL D4
2) In ROW 5, choose between five alternative approaches to enter the organization’s data based on which scenario best describes the nature of your project. You
will notice that the table will show between 2 and 5 rows of data entry points, depending on the approach you choose.

User Generated Categories—This simple approach gives organizations a general picture about their energy use and potential savings. You can enter specific
property addresses or group properties together. If you are unsure how to group your properties, you might start by thinking of them in two categories: “more
energy efficient” versus “less energy efficient”. After all, it is usually easier to save energy in the less energy-efficient properties.

Using Benchmark Results from ENERGY STAR—This is a good approach for ENERGY STAR partners using EPA’s benchmarking tool, Portfolio Manager. This
approach breaks the data into four quatiles in terms of energy consumption: the bottom quartile is high energy consumers (ratings of 24 or below), the third
group is below average (ratings between 25 and 49), the second group is above average (ratings between 50 and 74), and the top group (ratings of 75 or above)
consists of the best performing buildings. The quartile-based method is a more detailed approach as it requires organizations to enter four sets of data instead of
the two sets in the “User Generated Categories” approach. If you have benchmarked your buildings, use this tab to enter the results into the corresponding
quartiles. If you have not completed the benchmarking exercise, you can enter your best guess for square footage and cost per square foot for each quartile.

Green Building Categories (LEED EB)—Energy efficiency and indoor air quality are critical components of green building projects, and they are required by the
U.S. Green Building Council (USGBC) to obtain Leadership in Energy and Environmental Design (LEED®) certification. One ongoing concern is how to pay for green
improvements. Energy and water savings (and others) may be captured from current operating budgets and used to pay for the needed equipment. This
approach gives you the opportunity to enter data in the familiar LEED categories: Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials &
Resources, and Indoor Environmental Quality.

Water or Wastewater Treatment Plants—Water and Wastewater facilities measure energy consumption in different ways, the most common being Million
Gallons per Day (MGD) for process facilities and cost per square foot for administrative buildings.

Energy Efficiency Project Type—This option allows you to input the data and projected savings based on the type of technology being installed. The sample
categories include Retrocommissioning, Lighting, Supplemental Loads, Air Distribution Systems, and Heating and Cooling (see the ENERGY STAR Building Upgrade
Manual for more details on these categories, downloadable from http://www.energystar.gov/index.cfm?c=business.bus_upgrade_manual).

                                                                             ENERGY STAR® does not guarantee that                                     Printed on 7/18/2011 7:22 PM
  74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Instructions    your project will generate the results presented herein. See full disclaimer.                               Page 5 of 16
                                                          ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                            Instructions
Manual for more details on these categories, downloadable from http://www.energystar.gov/index.cfm?c=business.bus_upgrade_manual).

Manufacturing Facility— Manufacturers often use energy intensity metrics based on a unit of production to track energy use. Common metrics include:
BTU/pound of production, BTU/part, kWh/finished product. This option allows you to use a production-based energy intensity metric for either the entire
facility or a process line for which the project is being implemented.

All category names in the Types of Analysis can be overwritten to reflect the project you are analyzing.

3) In ROW 6, Values, enter the total annual energy costs along with other supporting data (i.e., square feet, million of gallons per day, etc.) for each of your
groups.

Energy unit costs (Column “F”) will automatically be calculated. If you do not know your organization’s details, you may populate the data fields with sample
values by clicking on the “Sample Values” menu. “User Defined Values” option is prepared for you to enter your own values and are highlighted in yellow. You
can overwrite the sample data with actual data at any time.

The “Savings Target” is your best estimate of typical savings. Many organizations find that 10-20 percent savings can be obtained through behavioral
modifications and consider 20 to 35 percent as a realistic overall target for most energy efficiency projects. Enter your best guess; remember that these target
amounts can be easily changed later to reflect alternative estimates.

In all cases, enter your organization’s total energy costs (Electricity, Natural Gas, Steam, Chilled Water, Fuel Oil *No.1, No.2, No.5, and/orNo.6], Coal [anthracite],
Coal [bituminous], Coke, Diesel [No.2], Propane, Liquid Propane, Kerosene, Wood, and Other) by category. When possible enter the square feet under
management by category (this may not be always appropriate, for example LEED: EB O&M categories may not be conducive to measuring in square feet and
water/wastewater facilities measure in million gallons per day).

You can personalize all of the approaches in this program by creating your own category names, which may be helpful when presenting the Cash Flow
Opportunity Calculator results to others. For example, personalized labels can reflect facility groups (i.e., “North Campus” or “Beach Properties”), addresses (i.e.,
“123 Main Street” or “5 Broadway”), or any labels that work for your organization. These names will appear in the reports generated by the program. Simply
overwrite the names shown in the Column labeled “Category Name” (Column “C”).

To switch between approaches, use the drop down menu labeled “Select Data Source” (CELL C5). You may populate this model with the sample values by clicking
on the “Sample Values” menu. Yellow cells indicate that data entry is required; these cells will change to white after data have been entered. Blue cells are
protected and can only be changed by modifying the input data. CAUTION: Any user-entered data will be lost when selecting the sample values.

Section 2—Investment Values Tab
ROWs 5 and 6 pull forward the summary details you entered on the earlier “Data Entry Tab”.
This worksheet operates like a “reverse financial calculator” and will help you estimate the amount of equipment that could be financed with the future energy
savings.
1. In the line “Assuming an interest rate of” (CELL F10), enter the interest rate you think will reflect the cost of financing your project. The actual rate will depend
on whether the financing is tax-exempt or taxable, your organization’s credit rating, dollar amount, and term of the transaction.

2. In the line “Assuming a term of” (CELL F11), enter the financing term that you think will be acceptable to your organization and a lender. Typically this will be
determined by the useful economic life of the equipment installed. The financing term should be longer than the simple payback of the equipment to generate a


                                                                              ENERGY STAR® does not guarantee that                                         Printed on 7/18/2011 7:22 PM
  74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Instructions     your project will generate the results presented herein. See full disclaimer.                                   Page 6 of 16
                                                          ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                            Instructions

determined by the useful economic life of the equipment installed. The financing term should 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 percentage 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 green “Calculate” button to determine the amount of money that is buried in your utility bill, based on the estimates stated above, which then appears
in green (CELL E15). Bear in mind that 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.

The project’s simple payback is also shown 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 with your existing operating and capital budgets, the next step involves timing.

Section 3—Cash Flow 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 “pay as you use”
by financing an energy efficiency project immediately using a third-party lender and capture the savings sooner.

It is true that interest payments can be avoided altogether by including these energy projects in future capital or operating budgets. However, there is a cost of
delay to be considered when postponing these projects. This spreadsheet provides a discounted cash flow analysis to help determine the better business
decision: (a) deferring the installation until a future budget or (b) financing the installation today. Often, the energy efficiency savings lost in one year exceed the
total amount of the financing costs throughout the entire financing period.

Data Carried Forward From Earlier Worksheets
In the top left section, the “Project cost” (CELL G4), “Interest rate” (CELL G7), and “Financing term” (CELL G 8) are importe d from the prior “Investment Values”
worksheet. The “Simple payback” of the equipment to be installed (the time it takes to recover the project cost from savings, including financing costs) is also
carried forward and entered into CELLs G5 (years) and G6 (months).
These numbers can be overwritten if you wish.

New Data Entry
In the line “Year(s) postponed” (CELL G9), enter the number of years the project will be delayed if you have to wait and include it in a future budget; for example,
if the project will be included in next year’s budget, use the number “1.”
In the “Project cost increase due to postponement” (CELL G10), enter the percent you believe the project costs will increase (labor and material costs, lost
rebates, etc.) caused by delaying the project




                                                                              ENERGY STAR® does not guarantee that                                         Printed on 7/18/2011 7:22 PM
  74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Instructions     your project will generate the results presented herein. See full disclaimer.                                   Page 7 of 16
                                                          ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                            Instructions

rebates, etc.) caused by delaying the project
In the line “Estimated energy cost increases in Year 2” (CELL G11), enter the percent you believe your energy costs will increase next year (Year 2).
In the line “Annual increase in energy costs after Year 2” (CELL G12), enter the estimated amount your energy costs will increase after next year (Year 2), in
percent.

In the line “Estimated energy savings in first year (Year 1)” (CELL G13), enter the percent of the savings you will be able to capture during the first year. The
amount of the savings will vary based on the installation time needed to complete the project.
You can modify all these numbers by overwriting them or start from scratch by clicking on the "Sample Values” button at the top of the page.

Comparison Tables (Option A—Fast Track Financing vs. Option B—Waiting for Cash)
The tables starting at ROW 18 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 26 years of cash flows to be discounted back to their Net
Present Values for each of these options (CELLs G13 and K13), using the Interest Rate stated in CELL G7 as the discount rate for both options. Cash flows are
limited to the finance term plus one year.

The results of these Net Present Value calculations are found on ROW 15. Whichever option generates the greatest present value dollars is considered 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 graphically reflects the impact
of writing a big check and slowly “fill in the hole” with the savings over time versus using third-party financing immediately to level out the project’s cash flow.

This spreadsheet is a good sensitivity analysis tool because it allows you to make “what if” calculations by changing the paybacks, interest rates, and terms to
ensure that your financed energy efficiency project always generates positive cash flow. It also is useful when structuring your financing should the energy
savings be insufficient to cover the repayment of the entire project. We urge you to start with the maximum financing term your organization finds acceptable
and then experiment with the average simple paybacks to leverage the energy savings fully. Slow and fast payback projects should be blended to obtain this
average number.

Section 4—Interest Rates Tab
If the prior calculation confirmed that it is a better decision to finance and install now rather than wait for the availability 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 a subsidized loan program) or finance it now at a slightly higher rate
that is readily available?

Instinct suggests that financing with the lower interest rate is the best alternative. However, to determine which finance offering represents the “better deal,”
additional considerations need to be addressed:

Are there any additional fees or closing costs associated with each financing alternative? For example, bonds require extensive (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.




                                                                              ENERGY STAR® does not guarantee that                                         Printed on 7/18/2011 7:22 PM
  74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Instructions     your project will generate the results presented herein. See full disclaimer.                                   Page 8 of 16
                                                          ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                            Instructions
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.

Alternative financing may be immediately available. Floating a bond typically is a slow process.

In addition, public sector General Obligation bonds are considered debt (a capital budget event) and typically require voter approval. Some alternative financing
choices may be treated as non-capital budget events (i.e., tax-exempt lease-purchase agreements and performance contracts). Asking the voters to approve any
expenditure (including profitable ones) may add both real and political costs to the decision.

Opportunity Costs. By definition, delays in installing energy efficiency projects mean that the utility bills are higher than 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 a lower-cost financing? The “Interest Rates”
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 efficiency dollars are being lost. Holding
out for a lower interest rate often proves to be a more expensive decision than financing immediately at a higher rate.


Data Points
The following data points are pulled forward from earlier worksheets:
“Interest rate of immediate financing” (CELL G4), “Cost of the equipment” (CELL G6), “Simple payback” (CELLS G7 and G8), “Potential annual savings” (CELL G9),
“Term of the financing” (CELL G10)
These amounts can be overwritten.

Entering Data
Enter the “Interest rate of the lower financing” in CELL G5 (lower than the number entered in CELL G4.).

The "Lower rate interest savings" (CELL G11) calculates the present value benefit of entering into one interest rate financing versus another. Assuming equal
borrowing terms and starting dates, it computes how much money the lower interest rate financing will save over 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 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 l osses may represent a substantial
percentage of the project cost (CELL G14).

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




                                                                              ENERGY STAR® does not guarantee that                                         Printed on 7/18/2011 7:22 PM
  74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Instructions     your project will generate the results presented herein. See full disclaimer.                                   Page 9 of 16
                                                          ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                            Instructions
This calculator automatically prepares a report containing all the salient spreadsheet data. Click the "Print" button to print a copy of this report.

IMPORTANT NOTICE: The macros imbedded in this spreadsheet must be enabled to use this calculator. To enable the macros using Microsoft Excel 2000, 2002,
or 2003, please click on Tools > Macro > Security Level and select the "medium" (recommended) or "low" security level (not re commended as this "low" macro
security option enables macros without giving you the option to enable/disable the macros). If you are using Microsoft Excel 2007, click Developer > Macros and
select “Disable all macros with notification” option. Note that you will need to close all Excel applications after enabling the macros and reopen this worksheet.
You must enable macros if and when prompted by the program upon opening. CAUTION: Macros in other spreadsheets may carry harmful programming codes.
Do not enable macros from sources you do not trust.

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

DISCLAIMER: 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.




                                                                             ENERGY STAR® does not guarantee that                                       Printed on 7/18/2011 7:22 PM
  74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Instructions    your project will generate the results presented herein. See full disclaimer.                                Page 10 of 16
                                               ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                  Data Entry




                                                                                            User Generated Categories - DATA ENTRY TABLE


                                       Name Example organization name here

                        Select type of analysis User Generated Categories
                                                User Generated Categories


                                    Values

                                                                   Annual energy
                                                                  costs ($) - all fuel                                      Potential annual
                 User Generated Categories            SF                types              $/SF        Savings target (%)       savings

                Enter Category Name Here               0                  $0               $0.00              0.00                $0

                Enter Category Name Here               0                  $0               $0.00              0.00                $0
                                                                    Total energy
                                                                  costs ($) - all fuel                  Weighted savings   Total potential
                                                   Total SF             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 7/18/2011 7:22 PM
     74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls / Data Entry                                                                               Page 11 of 16
                                                                      ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                                     Investment Values




                                                                                                                                                            INVESTMENT OPPORTUNITY
                                                                    Potential Annual Savings = Cash Flow Opportunity
                                       Enter Category Name Enter Category Name
                                               Here                Here                                                                                                                Totals
              Annual energy costs                 $0                         $0                         $0                         $0                        $0                          $0
          Potential annual savings                $0                         $0                         $0                         $0                        $0                            $0




                                                                           What Can $0,000 of Annual Savings Buy?

                               Assuming an interest rate of                                            0.00                                       %
                                         Assuming a term of                                             0                                         Year(s)
         Savings used to pay energy/retrofit investments                                               0.0                                        %

      Additional funds such as rebates, etc. (if available)                                             $0


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



                                                  Project Cost                                          $0



                                                                                                     $0.000
                                                                                                                                                                         Consider blending short- and long-
                                                                                                                                                                         term projects to maximize use of
                                                                                                        0                                         Year(s)
                                              Simple Payback                                                                                                                       the savings.
                                                                                                        0                                         Month(s)
                                                                                                                                                                                              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 7/18/2011 7:22 PM
  74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Investment Values                                 See full disclaimer.                                                                                 Page 12 of 16
                                                                ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                               Cash Flow Projection




                                                                                                                         COST OF DELAY and CASH FLOW ANALYSIS


                                        Project cost           0             $                                     Cumulative Cash Flow Impact Comparison
                                                               0             years              $1
                                   Simple payback
                                                               0             month(s)           $1

                                        Interest rate                                           $1
                                                             0.00            %
                                                                                                $0
                                     Financing term            0             years
                                                                                                $0
                                Year(s) postponed              0             years
                                                                                                $0
       Project cost increase due to postponement             0.00            %
                                                                                                                                                    1
          Estimated energy cost change in year 2             0.00            %
       Annual change in energy costs after year 2            0.00            %                                                           Option A               Option B         Year
              Estimated energy savings in year 1             0.00            %

                                                                       These cash flow calculations are on a pretax basis.
                        For purposes of this calculation, all cash flows are being discounted at the interest rate indicated in cell G7 - financing paid monthly in arrears.



        Net Present Value of Option A                                                                                                                         Net Present Value of Option B
                                                                             $0                                                     $0
               (Fast Track Financing)                                                                                                                         (Waiting for Cash)




                                Option A (Fast Track Financing)                                                                            Option B (Waiting for Cash)
                                 Project Cost           Annual Cash                                                                                            Annual Cash
Year        Savings                                                  Cumulative Cash Flow                         Savings                 Project Cost                      Cumulative Cash Flow
                             including financing           Flow                                                                                                   Flow
   1                   $0                         $0              $0                   $0                                      $0                        $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 7/18/2011 7:22 PM
  74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Cash Flow                                      See full disclaimer.                                                                             Page 13 of 16
                                                     ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                       Cost of Delay




                                                                      COST OF DELAY - Comparative Interest Rate Analysis
                                                                                                                     Lower Interest
                                                                                                                      rate savings                            Lower Interest
                                                                                                                       balance at          Amount lost in      rate savings
                                                                                                                      beginning of         monthly utility   balance at end of
                         Interest rate of higher financing               0.00            %               Month           month                 bills              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

                                                                                                            9               $0                  $0                  $0

                                                                                                           10               $0                  $0                  $0
  *Lower Interest Rate Savings number is calculated by taking the NPV of the difference                    11               $0                  $0                  $0
  between the two monthly payments (immediate versus lower financing rates),
  discounted at the lower interest rate.                                                                   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 7/18/2011
74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Interest Rates                         See full disclaimer.                                                                 Page 14 of 16
                                             ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                            Summary of Results




                                                            CASH FLOW OPPORTUNITY CALCULATOR
                                                                                                                        Version 2.0 - 2010 - BETA VERSION




SUMMARY OF FINANCIAL CALCULATIONS: User Generated Categories

                      Name: Example organization name here
       Selected Scenario: User Generated Categories

                                                        ®                                                    ®
This information has been generated by an Excel spreadsheet developed by ENERGY STAR called the Cash Flow Opportunity Calculator. The purpose
of the calculator is to It helps address three critical questions about installing energy efficiency projects:
      1. How much new energy efficiency equipment can be purchased from the anticipated savings?
      2. Should this equipment purchase be financed now or is it better to wait and use cash from a future budget?
      3. 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                        Savings target Potential annual
                                                                      SF             fuel types             $/SF               (%)           savings
                                                            0          0                  $0               $0.00                0.0              $0

                                                            0          0                  $0               $0.00                0.0              $0

                                                            0

                                                            0

                                                            0          0                  $0               $0.00                0.0              $0

                                                                                   Total energy                             Weighted       Total potential
                                                                                   costs ($) - all                        savings target   annual savings
                                                                  Total SF          fuel types              $/SF               (%)               ($)

                                                      Total                               $0                                   0.00%             $0



Redirecting funds from the existing utility budget by the “Savings Target” number, will free up about $0,000 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: $0,000 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.
When funds are not readily available, a frequently asked question is whether the energy saving project should be installed immediately and financed (“pay-
as-we-use” philosophy), or if would it be a better decision to wait until the funds become available in a future budget (“pay-as-we-go” philosophy). Naturally,
if we wait until money is budgeted, interest payments can be avoided altogether, but we lose the savings during this waiting period. To evaluate this decision,
we use a discounted net-present-value analysis of the cash flows resulting from these two decision points using the financing terms and interest rate stated
above, along with the following assumptions:
(a) The project costs will increase due to increased labor and material costs by:                                                                      0.0%
(b) Energy costs will increase next year by:                                                                                                           0.0%
(c) Energy costs will increase an average thereafter and throughout the financing period by:                                                           0.0%
(d) The project will capture the first year energy savings due to estimated construction delays by:                                                    0.0%




                                                   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 7/18/2011 7:22 PM
74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Summary                             See full disclaimer.                                                                      Page 15 of 16
                                                 ENERGY STAR CASH FLOW OPPORTUNITY CALCULATOR
                                                                Summary of Results




    The cash flows when financing the project are estimated as follows:

Year                   Savings            Project Cost including financing            Annual Cash Flow                       Cumulative Cash Flow
1                           $0                             $0                                    $0                                     $0
    The results show the following:
    If the project is financed immediately (Option A), the net present value of the project after 0 years is:                                                  $0
    If the installation is deferred for 0 year(s) (Option B), the net present value of the project after 0 years is:                                           $0




    3. Waiting for a better interest rate
    Energy efficiency projects can help prove the statement that “time is money."
    When comparing financing options, the speed with which the funds become available has a direct impact on the cash flows of the project. Naturally, the
    longer it takes to access the funding, the more opportunity losses (unnecessary payments to the utility companies) will be incurred.

    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, we are offered a 0% financing, which is immediately available. If we wait, we may be able to obtain financing at 0%.
    The net present value benefit of this lower rate (calculation is based on the obtaining funding for either financing on the same date) would be equal to
    approximately $0,000. Because our project has a simple payback of 0 years and 0 months, we can wait no longer than 0.0 months, before the lower interest
    rate financing costs more dollars (in other words, the higher interest rate financing provides more cash!).

                         Cumulative Cash Flow Impact Comparison
     $1

     $1
                                                                                                                             This graph reflects the cumulative cash flow impact
                                                                                                                             of financing the project now (Option A), versus
     $1
                                                                                                                             waiting until the funding is available in a future
                                                                                                                             budget (Option B).
     $0

     $0

     $0
                                                     Option A
                                                          1                     Option B                 Year

    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 Hatcher.Caterina@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 7/18/2011 7:22 PM
    74b7e1dc-6fa5-4559-9047-f5557e76ea30.xls/Summary                             See full disclaimer.                                                                   Page 16 of 16

				
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