time value of money

• There are two main reasons why money is worth more now than it will be in the future: money is worth less in the future and inflation reduces the purchasing power of money in the future.

cash flow diagram

• An important step in analyzing an investment or decision.

• A cash flow diagram visually displays the movement of money by using arrows to represent the inflow and outflow of money.

economic equivalence

• Compare value at different points in time and amounts by calculating the equivalence of cash flows.

Purchase rate

• Purchase rates are an energy policy instrument that encourages the deployment of renewable energy and reduces greenhouse gas emissions.

• The purchase rate is a contract signed between the government or energy management agency and energy suppliers or the public, which determines the use of renewable energy within a certain period of time and provides it at a fixed rate and preferential price.

• The calculation of the purchase rate takes into account factors such as the average purchase cost, operating years, maintenance costs and annual power generation of various renewable energy power generation equipment.