I am trying to understand how IBIs and CBIs are being used to calculate the "Issuance of Equity" and "Pre-Tax Cash Flow" values/schedules and unless I am misunderstanding, I think IBIs and CBIs are being double counted.
For example, in the image below, the Total Capital Costs (YELLOW) is ~$10M. The Total CBI (GREEN) is $4,265,600. The model is assuming that the CBI is being received early enough such that it can reduce the Issuance of Equity (BLUE) which makes sense. What I am struggling to understand is why the Total CBI is also being included in the Pre-Tax Cash Flow (PINK). If the CBI is being use as a CAPEX Source, I don't think it makes sense to also include it in the Equity Return (Pre-Tax Cash Flow) since the Equity provider is not receiving that value. That value is instead, as mentioned earlier, being used towards for CAPEX year 0.
I appreciate any guidance or explanation.