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Prepared by Resources Future. www.resourcesfuture.com
The investor keeps the project exposure and sells credits over the full project life as issuance occurs.
The investor receives early cash flows, then sells future credit rights in the selected exit year.
The model compares three carbon price cases. Each scenario includes issuance timing, validation cost, verification cost, transaction fees, cost escalation and the selected exit structure.
| Scenario | Starting Price | Hold NPV | Hold IRR | Net Exit Proceeds | Exit NPV | Exit IRR | Recommended |
|---|---|---|---|---|---|---|---|
| Click calculate to generate scenarios. | |||||||
This table shows how early exit strategy NPV changes when the exit price and buyer haircut change.
| Exit Price / Haircut | 10% Haircut | 20% Haircut | 30% Haircut | 40% Haircut |
|---|---|---|---|---|
| Click calculate to generate sensitivity analysis. | ||||
This table shows the base case year-by-year cash flow if the investor holds the project exposure. Revenue appears only in issuance years because credits are assumed to be sold when issued.
| Year | Credit Price | Credits Sold | Revenue After Fee | Costs | Net Cash Flow | Cumulative Cash Flow |
|---|---|---|---|---|---|---|
| Click calculate to generate cash flows. | ||||||
This table shows the investor cash flows up to the exit year, including net exit proceeds in the selected exit year.
| Year | Operating Cash Flow | Exit Proceeds | Total Cash Flow | Cumulative Cash Flow |
|---|---|---|---|---|
| Click calculate to generate exit cash flows. | ||||