FIN 0630
1  2  3  4  5  6  7  8  
Investment Component 
Interest rate = I 
Unpaid investment @ 10/1/91 = U 
Initial estimate of annual interest  Ui (col. 1x2) 
Interest adjustment for principal repayments 
Interest expense for year = 1 (col. 34) 
Revenue applied to repayment  Net revenue applied to int. & repayment (col. 5+6) 
Unpaid investment @ 93092 (col. 26) 

X 
Red River Powerplant Original cost 
3.00%  $20,000,000  $600,000  $0 /1  $600,000  $0  $600,000  $20,000,000 
Y  Addition FY 1975  4.00%  5,000,000  200,000  13,700 /2  186,300  698,700 /4  885,000  4,301,300 
Z  Replacement FY 1980  6.00%  500,000  30,000  15,000 /3  15,000  500,000  515,000  0 
TOTALS  $25,500,000  $830,000  $28,700  $801,300  $1,198,700  $2,000,000  $24,301,300 
ASSUMPTIONS:  
Annual gross revenues:  $10,000,000 
Annual expenses:  8,000,000 
Net revenues:  $ 2,000,000 
1/ Investment X  Revenues not available for any repayment.
2/ Investment Y  Estimate of annual interest less actual expense for the year. (Col. 35)
3/ Investment Z  Fully repaid. Interest for ½ year.
4/ Column 7 minus column 5
CALCULATIONS:  
Revenues:  $2,000,000  
Less: Repayment & interest  
Invest Z (col. 7)  $515,000  
Int. On invest X  600,000  1,115,000 
$ 885,000 
Investment Y  Partial repayment
I = (U (RUi)/2))*I
I=(5,000,000  (885,000200,000))/2) x .04 = 186.300