IECM 14.0 beta User Manual > Modules Included with the IECM > Low-Carbon Hydrogen Production & Transport > SET PARAMETERS > Overall Plant >

Financing & Cost Year

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The parameters on the Financing & Cost Year parameter screen define the financing parameters used for hydrogen plants. These parameters have a major impact on the costs of the overall plant and individual technologies. The following parameters are available:

•Cost Year Reported: This parameter is the same for all plant types. See Financing & Cost Year in the PC plant for more details.

•Constant or Current Dollar: This parameter is the same for all plant types. See Financing & Cost Year in the PC plant for more details. This parameter is currently read-only; Constant is the only value currently supported.

•Weighted Avg Cost of Capital: This financial parameter is used to calculate the TASC/TOC multiplier based on the percent and cost of equity and debt. This parameter is read-only.

•After Tax Weight Avg Cost of Capital: This financial parameter is used to calculate the fixed charge rate based on the percent and cost of equity and debt financing, as well as the federal and state tax rates. This parameter is read-only.

•Fixed Charge Rate: This parameter is the same for all plant types. See Financing & Cost Year in the PC plant for more details.

•Plant or Project Book Life: This parameter is the same for all plant types. See Financing & Cost Year in the PC plant for more details.

•Recovery Period: This parameter defines the depreciation period used for the 150% declining balance depreciation method with the half-year convention.

•Percent Equity: This parameter is the same for all plant types. See Financing & Cost Year in the PC plant for more details.

•Percent Debt: This parameter is the same for all plant types. See Financing & Cost Year in the PC plant for more details.

•Return on Equity: This financial performance metric represents the rate of return generated from equity.

•Cost of Debt: This parameter represents the interest expense associated with borrowed funds.

•Federal Tax Rate: This parameter is the same for all plant types. See Financing & Cost Year in the PC plant for more details.

•State Tax Rate: This parameter is the same for all plant types. See Financing & Cost Year in the PC plant for more details.

•Effective Tax Rate: This parameter is used to calculate the total taxes paid and deferred by considering both the federal and state tax rates.