Financial for Investment of Principle

  • kilimar
  • Topic Author
More
09 Nov 2017 00:15 #5848 by kilimar
Financial for Investment of Principle was created by kilimar
Is there a way to include the lost of interest from the principle investment had the monies not going into a PV system?

For example: You have $100K in investment(s) that is currently generating 5%. You take that $100K to buy the system, now that 5% income is "lost".

Basically some way to include the above scenario into the Financial Parameters.

Please Log in or Create an account to join the conversation.

  • pgilman
More
09 Nov 2017 12:54 #5849 by pgilman
Replied by pgilman on topic Financial for Investment of Principle
Hello,

You can use the discount rate on the Financial Parameters input page to account for the time value of money, or the value of an alternate investment.


Best regards,
Paul.

Please Log in or Create an account to join the conversation.

  • kilimar
  • Topic Author
More
09 Nov 2017 19:01 #5850 by kilimar
Replied by kilimar on topic Financial for Investment of Principle
Thanks. I guess I was looking some thing simply labeled, "alternative investment return rate". Reading the help -- I'm not sure I understand the variable. Nor how I would use it in as "alternative investment return rate". Can you explain? Thanks.

Please Log in or Create an account to join the conversation.

  • pgilman
More
13 Nov 2017 14:02 #5851 by pgilman
Replied by pgilman on topic Financial for Investment of Principle
Hello,

Please see Short et al. (1995) cited on the Financial Model Documentation page for description of the variables and basic principles used for SAM's financial models:

sam.nrel.gov/financial

Best regards,
Paul.

Please Log in or Create an account to join the conversation.

Moderators: pgilman
Powered by Kunena Forum