A type of accounting ratio that helps measure a company's ability to meet its obligations satisfactorily. A coverage ratio encompasses many different types of financial ratios. Typically, these kinds of ratios involve a comparison of assets and liabilities. The better the assets "cover" the liabilities, the better off the company is.
A system of parameters or other quantitative assessments of a business that can be measured periodically and systematically. Business metrics are often used to keep track of how well a business is meeting its objectives.
The rate that utilities are required to pay independent power producers according to the Public Utilities Regulatory Policy Act (PURPA). Avoided cost is the simply the cost that the utility would have incurred for producing the same amount of power. This is not a favorable rate to recieve as an independent power producer.
Total assets divided by shareholder equity. The asset/equity ratio is often used as a measure of leverage, or how well a project utilizes investment capital to realize return for investors.
AMT can be thought of as a different tax system with different rules and deductions; taxpayers must compute their taxes under both the regular tax and AMT rules and then pay the greater of the two. The purpose of the AMT is to prenvet those in the higher tax bracket from getting by from year to year tax free. A consequence is that many unsuspecting taxpayers who make less than $100,000 a year with certain kinds of investments and deductions end up having to pay the AMT. Investing in certain types of businesses can trigger the AMT.
With accelerated depreciation, wind projects can reduce the assessed value of their equipment on their financial balance sheets over a shorter period of time than other real assets.
Total costs for installing a commercial-scale wind turbine will vary significantly depending on the number of turbines ordered, cost of financing, when the turbine purchase agreement was executed, construction contracts, the location of the project, and other factors. More...
The isind Project Calculator was developed to assist in performing cash flow modeling for community wind projects.
One of the main benefits of wind energy is economic gain, both for individuals and for communities. Individuals can save money on their energy bills, and even make money by generating wind power. Communities can diversify their economies and enjoy greater reliance on local resources when their members invest in wind.
Of course, a wind project will provide these advantages only if the economics have been thought through in advance. Like any investment, wind energy projects require some research and a basic understanding of the risks, costs, and benefits involved.