FIN 06-30

		1	2	3	4	5	6	7	8
Investment Component		Interest rate = I	Unpaid investment @ 10/1/91 = U	Initial estimate of annual interest - Ui (col. 1x2)	Interest adjustment for principal repayments	Interest expense for year = 1 (col. 3-4)	Revenue applied to repayment	Net revenue applied to int. & repayment (col. 5+6)	Unpaid investment @ 9-30-92 (col. 2-6)
X	Red River Powerplant Original cost	3.00%	$20,000,000	$600,000	$0 /1	$600,000	$0	$600,000	$20,000,000
Y	Addition FY 1975	4.00%	5,000,000	200,000	13,700 /2	186,300	698,700 /4	885,000	4,301,300
Z	Replacement FY 1980	6.00%	500,000	30,000	15,000 /3	15,000	500,000	515,000	0
	TOTALS		$25,500,000	$830,000	$28,700	$801,300	$1,198,700	$2,000,000	$24,301,300

ASSUMPTIONS:
Annual gross revenues:	$10,000,000
Annual expenses:	8,000,000
Net revenues:	$ 2,000,000

1/ Investment X - Revenues not available for any repayment.

2/ Investment Y - Estimate of annual interest less actual expense for the year. (Col. 3-5)

3/ Investment Z - Fully repaid. Interest for ½ year.

4/ Column 7 minus column 5

CALCULATIONS:
Revenues:		$2,000,000
Less: Repayment & interest
Invest Z (col. 7)	$515,000
Int. On invest X	600,000	1,115,000
		$ 885,000

Investment Y - Partial repayment

I = (U- (R-Ui)/2))*I

I=(5,000,000 - (885,000-200,000))/2) x .04 = 186.300