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	=	Before-Tax 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)