Financial for Investment of Principle

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kilimar
Financial for Investment of Principle

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.

Paul Gilman

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.

kilimar

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.

Paul Gilman

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:

https://sam.nrel.gov/financial

Best regards,
Paul.

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