Water: Economics
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Policy & Guidance
Interim Economic Guidance for Water Quality Standards
Worksheet W
Calculation of Profit Rates
A. Profit Rate Without Project Costs
PRT = EBT ÷ R
B. Profit Rate With Pollution Control Costs
PRPR = EWPR ÷ R
Where:  PRT  =  Profit Rate Before Taxes 
PRPR  = 
Profit Rate with Pollution Control Costs 

EBT  =  Earnings Before Taxes  
EWPR  =  BeforeTax Earnings with Pollution Control Costs  
R  =  Revenues 
EBT [Worksheet V, (4)]  ________ (1)  
R [Worksheet V, (1)]  ________ (2)  
PRT = Calculate: [(1)/(2)]  ________ (3)  
EWPR [Worksheet V, (6)]  $________ (4)  
R [Worksheet V, (1)]  $________ (5)  
PRPR [Calculate: (4)/(5)]  ________ (6) 