Economics and IRR

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FREE ENERGY Provides COMMUNITIES . . .

                                                                                                                                                                    

The IRR on YouTube Video

The Internal Rate of Return (IRR) is an indication of whether the owners of a business will see achievement and successes in their investment. Included is the length of time that will allow them ro recover their investment.

This project looks at the sense of the equality of People. A Credit Union, for example, owns the Business and ALL the MEMBERS own the Credit Union with equal votes.

The Members all SHARE the profits. 


The RECOMMENDATION is for the project to be eventually TURNED OVER to the COMMUNITY where it is located. 


The ideal process of handing over the Business to a COMMUNITY is through a Build-Operate-and-Transfer (BOT) method. After the Business Entity recovers it Investment with Profits, agreed upon, a Community becomes the OWNER of the Project, through the BOT Contract. 

At this point, the Community may reduce the selling prices of Electricity, Water, Drying, Freezing, and Chilling to DECREASE the amount of the "gravy." The selling prices of Salt should match the importation price to 

                                                                                                                                                                    

Without the Project, the costs of the major products that are outputs this Project provides are found as entries on the Expenses. 

These products are purchased independently from those who produce them. Water, salt, dryer energy, etc., are produced at those sources, and in many cases most efficiently using their technology.

Very briefly, consider the borders of the Community. Those products that cross the border coming inside are considered Expenses. The money that the Community did not spend to pay products coming in are no longer in the Expense entry. 

And since the Community produces these products that members buy, the money that they will use to buy will go to income (which may be considered as savings).

The NIBIT (Net Income Before Interests and Taxes) will come out the way it always does.

When the project is completed by the Community, its Income Statement will RADICALLY change. The arrows provided, above, indicate the direction of the results.

                                                                                                                                                                    

What are the facts on the new Income Statement? 

NIBIT = Revenues LESS Expenses 

will RADICALLY reflect a very beneficial project for Communities.

The Cash Flow Statement will also radically change, and show admirable values. The Internal Rate of Return (IRR), which reflects the forecasted performance of the Project is an important factor for financing. 

This is going to create the understanding of Finance.

                                                                                                                                                                    

This is a list of advantages for the Project.

On Carbon Credit (CO2) release

This Project uses 128 liters per hour of gasoline. At this consumption it releases 128 liters per hour x 2.35 kilograms of C02 per liter equals 300 kilograms of CO2 per hour.

https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle#:~:text=Every%20gallon%20of%20gasoline%20burned%20creates%20about%208%2C887%20grams%20of%20CO2.

Conclusion on Carbon Credit

It is simply a wonderful feeling that this Project releases lesser CO2 per kilowatt-hour of electricity and work for the benefit of the Planet.


Conversions, below:


On Government Incentives.

Republic Act No. 11285 (Energy Efficiency and Conservation Act) Philippines 2021. This Act, approved on 12 April 2019, sets out plans to increase energy efficiency and reduce consumption within the Philippines. 

The law is to be implemented by the Department of Energy and the legislation provides for various new mandates of the department, as well as imposing responsibilities on other government bodies. An inter-agency committee on Energy efficiency is created. 

https://climate-laws.org/document/republic-act-no-11285-energy-efficiency-and-conservation-act_ae48


No Toxic Brine.

No brine with high salinity beyond 6.5% (or as provided by law), is sent back to the sea. Concentrated salt water is conveyed to micro or mini salt farms on land. Salt crystals are allowed to dry there.


Responsible Human Beings Caring for Planet.

The power plants using Malampaya Natural Gas in Batangas release less CO2 than is released by Advanced Technology


EXPORT - Made in the Philippines.

If the project succeeds, everyone is sure that other countries will ask the Philippines to install the System there. 

And, will these other countries experience similar movements of the ECONOMICS and IRR of the Project?


An Estimated Economics and Internal Rate of Return

The Spreadsheet with Live RECALCS

The arrow on the TOP RIGHT CORNER will open the whole sheet on a new tab. Near the top right is a symbol on the browser that starts a DOWNLOAD when clicked.

Anybody who wants to evaluate the Calculations for the Project will INITIALLY press the button for "Enable Editing" on the top of the spreadsheet. The edited copy will AFFECT the copy being edited. 

By the way, the formulae have not been protected to allow modification at the user's discretion. To go back to the source, the user will simply retrace the steps described above, or keep a copy of the Worksheet at a preferred location. 

Certain cells are provided with "Comments". While at the browser, the user can view them by clicking those that are of interest. Each comment, is for that PARTICULAR cell. 

Once downloaded, the Excel will show each comment while the pointer is in a specific cell. "mouse hover" will activate.

ENJOY ! ! !

The GOAL is to bring the PROFIT to ALMOST ZERO after the Project Investment is Recovered.

This is to ADJUST the REVENUE for the COMMUNITY, which is the OWNER of the Project.

Money stays within the Community to CIRCULATE. 

estimated_05_20231126.xlsx

BENEFITS for COMMUNITIES and DESCENDANTS, for CLIMATE, and for the PLANET are not QUANTIFIED

These are the ITEMS that are DERIVED from the Project Design.


RECOMMENDATION FOR REVIEW: A Mechanical Engineer with a Professional License granted by the Professional Regulations Commission.

This estimate includes the whole picture that includes land, cost of technical assistance, transport cost of components, training and manuals, and the cost of money.

The first line on top is for components.

The last line at the bottom is the TOTAL Amount for the Project.

RECOMMENDATION FOR REVIEW: A Mechanical Engineer with a Professional License granted by the Professional Regulations Commission. 

                                                                                                                                                                    

Contents of this Website

Home


Overview


Thoughts


Technical Schematics


Energy Independence

Outputs


Details of Technology


Economics and IRR (Internal Rate of Return)


Implementation


Summary


                                                                                                                                                                    

for further ENJOYMENT

blog entry: https://thcal.blogspot.com/