I am modeling a project that requires the electricity rate to change by different percentages in different years, so I would need to use the electricity bill escalation rate in schedule mode. However, I have found that the schedule mode is giving different results than value mode, even though I have tested using the exact same rate in both.
For example:
Test case 1:
Inflation rate: 2.5%
Electricity bill escalation rate (value mode): -0.7% real (1.8% nominal)
NPV: $513
Test case 2:
Inflation rate: 2.5%
Electricity bill escalation rate (schedule mode): 1.8% every year
NPV: $-33,073
All other parameters are identical between both models. Theoretically, shouldn't the results be identical even though I am using value mode in Test 1 and schedule mode in Test 2?
I have attached the test file. Any assistance is greatly appreciated!