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Water: Economics

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)

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