| Financial analysis: |  |
| Environmental impact analysis: | --- |
| Waste management/P2: | --- |
| Environmental cost listing/database: | |
| Cost estimation: | --- |
| Alternative product/process comparison: | |
Analysis for the financial evaluation of pollution prevention (and other) projects.
| National agencies: | $10,000 |
| State/regional agencies: | $5000 |
Private firms:
|
$1000 $500 $200 |
| Industry trade associations: | $500 |
| Non-profit organizations: | $100 |
| Individuals: | $50 |
Windows Version 4.0
Version 3.4a for DOS
Other requirements:
The approach has four key features:
The inventory of costs and savings helps users in building their analysis and including all costs and revenues.
| Raw material acquisition | --- |
| Manufacturing stage | |
| Use/reuse/maintenance | |
| Recycle/waste management | |
| Conventional | |
| Potentially hidden | |
| Contingent | |
| External | --- |
The methodology is primarily used to account for conventional and hidden costs of inputs and outputs. Liability costs can also be included by specifying the year in which the liability is expected to occur. Potentially hidden less tangible costs (e.g., public image) could be entered as part of the 'other costs' category. However, external (social) costs are not included in the analysis (In our definition, less-tangible (internal) costs are included as hidden costs). The following indicate the major cost elements that P2/FINANCE typically includes.
| Capital Costs | Operating Costs |
|
Most of the costs listed above will include several sub-categories, with examples provided of additional cost elements that users can consider. For example, examples of sub-elements for revenue include change in sales from market share and corporate image. Social costs (externalities) are not included.
The method provides blank templates for data input by users for current and alternative practices. Pre-defined category names are included. Operating costs are entered for both the current and alternative processes, while capital costs are entered for the alternative process only. Other optional inputs include debt and equity parameters, interest and tax rate estimates, and an escalation rate.
| Net present value (NPV) | |
| Payback period | |
| Internal rate of return (IRR) | |
| Benefits cost ratio | --- |
| Other | --- |
Several financial indicators are calculated including NPV, IRR, and simple payback. The time horizons illustrated for each indicator are 5, 10, and 15 years, as well as one user-defined time horizon.
P2/FINANCE provides a mechanism to compare current and alternative practices. Its use is not limited to the analysis of P2 projects. The software comes equipped with an embedded cost list to remind users of potential costs and revenues that they might otherwise omit. Users can change field names in P2/FINANCE to tailor it to their requirements or facilitate the analysis of other projects. The familiar spreadsheet format facilities use by non-financial persons, such as process engineers. Demonstration disks of P2/FINANCE are available through Tellus. Tellus has a user-support technical hotline that is available free of charge to users.
Tellus is currently developing some industry-specific versions of P2/FINANCE. These versions are different from the original spreadsheet version in that they are programmed in FoxPro, a database language, which makes the software much more flexible. Some of the new features:
These versions are based on Total Cost Assessment principles (such as version 2.1 of the spreadsheet), but contain process-specific tailored lists for the particular industries. For example, in the screen printer's version, P2/FINANCE for Screen Printers, Version 1.0, costs are entered in one of the major screen printing processes and the cost list contains relevant screen printing materials under the heading materials, such as ink. This specificity can better assist screen printers in estimating the profitability of pollution prevention projects.
P2/FINANCE for Screen Printers will be unveiled soon. It can be obtained through the Screen printers' trade association, Screen Printing and Graphic Imaging Association, International (SGIA). Soon Tellus will be working on three other industry-specific versions with funding from NIST: lithographic printing, printed wiring board, and metals fabrication and finishing.
Users cannot enter any additional rows and columns to the spreadsheet. The system does not currently facilitate building-in of any algorithms. External (social) costs are not included in the analysis.
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