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Abstract: . . . leasing Microsoft PowerPoint - CEFN Leasing report DRAFT 02.25.02.ppt Page 1 Leasing and Distributed Generation Nexus Associates, Inc. CEFN CEFN Clean Energy Funds Network Investing in markets for clean energy. Clean Energy Group Clean Energy Funds Network 50 . . . . . . leasing Microsoft PowerPoint - CEFN Leasing report DRAFT 02.25.02.ppt Page 1 Leasing and Distributed Generation Nexus Associates, Inc. CEFN CEFN Clean Energy Funds Network Investing in markets for clean energy. Clean Energy Group Clean Energy Funds Network 50 State Street . . . . . . leasing Microsoft PowerPoint - CEFN Leasing report DRAFT 02.25.02.ppt Page 1 Leasing and Distributed Generation Nexus Associates, Inc. CEFN CEFN Clean Energy Funds Network Investing in markets for clean energy. Clean Energy Group Clean Energy Funds Network 50 State Street Suite 5 Montpelier, VT 05602 Tel: (802) 223-2554 Fax: (802) 223-4967 www.cleanenergyfunds.org DRAFT - 02.25.02 Page 2 . . . . . . which is optimized for each set of assumptions. If the debt fraction is 50%, the discount rate is 11.95%. 5 The lease price escalation rate only affects the project-financed NUD alternative. Page 18 Clean Energy Funds Network / Nexus Associates, Inc. Leasing and Distributed Generation DRAFT 02.25.02 Page 18 Appendix B – Assumptions used in analysis by Nexus Associates. Assumptions Base case System cost 10% lower Cost of capital 10% lower Total installed cost of system $10,000 $9,000 $10,000 Customer . . . . . . tax returns. Page 7 Clean Energy Funds Network / Nexus Associates, Inc. Leasing and Distributed Generation DRAFT 02.25.02 Page 7 Operating (True) leases have other potential advantages in addition to beneficial tax treatment. • Leased equipment is not reported on the balance sheet, allowing companies greater flexibility in taking on additional debt. • Leasing minimizes the need for upfront capital. Leases are typically structured to enable the lessee to finance 100% of asset costs, including design, . . . . . . assumptions. If the debt fraction is 50%, the discount rate is 11.95%. 5 The lease price escalation rate only affects the project-financed NUD alternative. Page 18 Clean Energy Funds Network / Nexus Associates, Inc. Leasing and Distributed Generation DRAFT 02.25.02 Page 18 Appendix B – Assumptions used in analysis by Nexus Associates. Assumptions Base case System cost 10% lower Cost of capital 10% lower Total installed cost of system $10,000 $9,000 $10,000 Customer lease payments' share of total cost . . . --3000,6,250,2850,23258
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