Attachment 7 - Preliminary Solar Design

25 YEAR FINANCIAL
SUMMARY

Net present value of investment 4                                                          $5,532,768.83

The Net Present Value (NPV) is the present day value of all future cash
in ows minus the out ows. Since money is worth more in the present day
than in the future, all future cash ows need to be discounted by in ation. A
positive NPV indicates a good investment.

Discounted payback period 4                                                                     2 - 3 years

Similarly, the Discounted Payback Period also accounts for all discounted
future cash ows. The resulting period will typically be longer than a "simple
payback period" calculation.

Total return on investment 4                                                                       4131%

The Return on Investment (ROI) is another measure of the ef ciency of your
solar investment. Imagine you invested $100.00 today and received $300.00
in return. The ROI would be 200%.

Rate of return on cash invested 4                                                                   47.3%

The Rate of Return on Cash Invested (or Internal Rate of Return) is the
annual compounded rate of return that the cash ows bring based upon the
net cash invested in the year of installation. Think of it as the interest rate
that a term deposit would need to provide to match the returns on your solar
investment.




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