Chapter six

Economic Criteria for Financial Decisions

Abstract

This chapter provides an explanation of the basic fundamental calculations involved in determining actual cost savings of solar energy alternative systems versus conventional systems. Discrete rate of return factors are tabularized over 30 years for interest rates from 0.5% to 10% for single payment and uniform payment series. Concepts of present and future worth of money are explained with examples. The use of Single Payment Compound Amount Factors, Single Payment Present Worth Factors, and Capital Recovery Factors are discussed with associated examples using discrete rate of return tables. Cash and loan repayment scenarios are addressed. State and Federal tax credits, rebates, and ...

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