You have been given responsibility for a portfolio of ten energy enterprises.

The names of the energy enterprises are One, Two, Three and so on … you get the idea.

Your responsibilities are financial, social and environmental.

For each enterprise you know: term (# of years to be repaid), interest rate, the amount being invested.

All the investments will be made in Year Zero

You should open a new file in a spreadsheet program such as Excel and begin with the following information

Name

Term
(yrs)

Interest
Rate

Amount

Other Information

One

7

10.7%

150000

Equal Annual Payment Method (PMT)

Two

5

8.0%

200000

Int Only Yrs 1-4, P+I in Year 5, Plus Carbon Monetized

Three

5

9.0%

100000

Equal PMT Method

Four

3

10.0%

750000

Int Only Yrs 1 &2, P+I in Year 3

Five

9

10.7%

225000

Equal PMT Method

Six

9

4.0%

175000

Int Only Yrs 3-8 Plus 2X Principal, and Carbon Monetized

Seven

6

12.0%

100000

Equal PMT Method

Eight

7

10.7%

220000

Equal PMT Method Plus Carbon Monetized

Nine

5

10.7%

120000

Equal PMT Method

Ten

8

11.0%

120000

Equal PMT Method

2160000

Assignment 1: set up work paper based on these four inputs and calculate the scheduled principal and interest payments from these ten investments. All investments are made in Year Zero and repaid in Years 1-9

Assignment 2: calculate the portfolio rate of return.

Assignment 3: Using the following estimates, deduct from this portfolio the cost incurred by you and your colleagues to invest and harvest these investments.

Year 0

Cost

1

250000

2

100000

3

100000

4

100000

5

25000

6

25000

7

25000

8

25000

9

1250000

Assignment 4: Calculate the new portfolio cash flow by year and determine the rate of return after costs.

Assignment 5: Insert the following data as to number of people permanently served and tonnes of carbon dioxide equivalent saved per year per enterprises

People

CO2e/year

Enterprise One

17000

7600

Two

34000

33000

Three

17000

10000

Four

2500

1000

Five

9000

12000

Six

60000

45000

Seven

18500

28500

Eight

25000

20000

Nine

25000

2300

Ten

25000

20000

Assignment 6: Calculate the Investment Required per person served and per tonne per year. Calculate this based on just the amount of the loans as well as across the portfolio after deducting the costs for you and your colleagues.

Assignment 7: Monetize the carbon for the few enterprises so noted. Assume that in order to monetize the carbon you must spend an additional $6 per tonne in Year 1 but that you will receive $6 per tonne in each of Year 2 through 6.

Assignment 8: What is the "all-in return" on your portfolio after taking into account carbon monetization revenues.

Assignment 9: Based on what you now know what is the reasonable interest rate you should promise on the portfolio to lenders and investors with or without carbon included?

NameTerm(yrs)

InterestRate

AmountOther InformationAssignment 1:set up work paper based on these four inputs and calculate the scheduled principal and interest payments from these ten investments. All investments are made in Year Zero and repaid in Years 1-9Assignment 2:calculate the portfolio rate of return.Assignment 3:Using the following estimates, deduct from this portfolio the cost incurred by you and your colleagues to invest and harvest these investments.Year 0CostAssignment 4:Calculate the new portfolio cash flow by year and determine the rate of return after costs.Assignment 5:Insert the following data as to number of people permanently served and tonnes of carbon dioxide equivalent saved per year per enterprisesPeopleCO2e/yearEnterpriseOneAssignment 6:Calculate the Investment Required per person served and per tonne per year. Calculate this based on just the amount of the loans as well as across the portfolio after deducting the costs for you and your colleagues.Assignment 7:Monetize the carbon for the few enterprises so noted. Assume that in order to monetize the carbon you must spend an additional $6 per tonne in Year 1 but that you will receive $6 per tonne in each of Year 2 through 6.Assignment 8:What is the "all-in return" on your portfolio after taking into account carbon monetization revenues.Assignment 9:Based on what you now know what is the reasonable interest rate you should promise on the portfolio to lenders and investors with or without carbon included?