
Engineering analysis  Economic analysis 

Land paid with equity  Land included in capital investment and cost is divided between financing and equity 
Tax benefits or losses carry over  Tax benefits or losses occur in the year they occur 
Interest is paid with equity during construction  Interest is compounded annually during construction (interest is capitalized) 
Loan and interest are not included in computing taxes  Loan interest is deductible for purposes of tax calculations 
Inflation is assumed to be zero  Inflation is assumed to be 2.5% 
