REI Solar Energy Program Case Overview REI (Recreation Equipment Inc) is a co-operative outdoor equipment store. It has a strong stewardship mission (https://www.rei.com/stewardship), which makes...

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Answered Same DayMay 14, 2021

Answer To: REI Solar Energy Program Case Overview REI (Recreation Equipment Inc) is a co-operative outdoor...

Tanmoy answered on May 17 2021
148 Votes
Sheet1
    Criteria    Proforma Analysis    1    2    3    4    5    6    7    8    9    10    11    12    13    14    15    16    17    18    19    20
    317460    System Cost    1000000
        Cash from Power Generation
    -0.
5%    Local Utility Incentives    28571    28429    28286    28145    28004
    3%    Less: Maintenance of System    -2500    -2575    -2652    -2732    -2814    -2898    -2985    -3075    -3167    -3262    -3360    -3461    -3564    -3671    -3781    -3895    -4012    -4132    -4256    -4384
        Total Cash Inflows    26071    25854    25634    25413    25190    -2898    -2985    -3075    -3167    -3262    -3360    -3461    -3564    -3671    -3781    -3895    -4012    -4132    -4256    -4384
        Avoided Costs
    6.5%    Avoided Energy Costs    41270    43952    46809    49852    53092    56543    60219    64133    68301    72741    77469    82505    87867    93579    99661    106139    113038    120386    128211    136545
    -10    Avoided Costs of Carbon Credits    2063    2053    2043    2033    2023    2012    2002    1992    1982    1972    1962    1952    1942    1932    1922    1912    1902    1892    1882    1872
        Total Avoided Costs    43333    46005    48852    51885    55115    58555    62221    66125    70283    74713    79431    84457    89809    95511    101583    108051    114940    122278    130093    138417
        Cash Flow Plus Avoided Cost    930596    71859    74486    77298    80305    55657    59236    63050    67116    71451    76071    80996    86245    91839    97802    104156    110929    118146    125837    134033
        Tax Benefits (Costs)
    39%    Tax on Cash Inflow @ 39%    -10168    -10083    -9997    -9911    -9824    1130    1164    1199    1235    1272    1310    1350    1390    1432    1475    1519    1565    1612    1660    1710
    30%    Federal Tax Credit @ 30%    300000
        Depreciation Tax Shield    66300    106080    63648    38189    38189    19094
        Net tax Benefit    356132    95997    53651    28278    28365    20225    1164    1199    1235    1272    1310    1350    1390    1432    1475    1519    1565    1612    1660    1710
        Cash...
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