(GP/GT) for Additional Water Supply in the Lower Rio Grande

conservative figure.
This rate is used for the calculation of the loan
payment and for the net present value calculation.
YEARS: The loan is amortized for the given time period.
A~UAL LOA~ PA Y:\I{ENT: The annual loan payment is a sum
of the principal and interest calculated for the specific year. Annual
interest is calculated by mUltipLying the total loan balance at the
beginning of the year by the interest rate. The principal is calculated
by subtracting the interest from the annual payment.
DEPRECIATION: Total capital building and equipment COSts are
depreciated for a given time period, based upon the straight line
depreciation method.
Cash Flow Assumptions
DEBT: It is assumed that 70% of total capital costs will be debt
financed.
PERCS'ITAGE OF CASH A V AILABLE FOR OPERATIONS ABOVE
CAPITAL COSTS: It is assumed that 30% of total capital costs are
owner financed. An additional contingency allowance of 15% of total
capital costs is included for operations.
CASH A V AILABLE FOR OPERATIONS: Total cash available for
operations is the sum of total capital costs and contingency funds.
BEGINNING CASH: The beginning cash amount is the sum of the
owner's contribution and the contingency funds.
SECTION 2. GREENHOUSE CAPITAL COSTS
Capital cost estimates for the greenhouse were obtained