Chapter 13 Info Guide

The CFO or controller should be able to provide information on the company’s budgeting process and investment criteria.

• How does the host company evaluate internal facilities or fleet investments?

• Can the host company provide an analysis or presentation for a recent, successful investment?

• Does the host company evaluate investments on a pre- or post-tax basis? If posttax, what tax rate does the company assume?

• What discount rate does the host company typically use? How was this discount rate determined?

• Are the following items depreciated? On what schedule?

• Lighting equipment

• Computers and office equipment

• HVAC systems

• When are budgets determined for each department? Is there flexibility in this process or is it fixed?

• When does the host company choose leases over purchasing assets?

• What types of services does the host company outsource?


1 For example, see
2 Moss, Steven, et al., “Distributed Energy Resource (DER) Implementation: Testing Effective Load Management at the Feeder Level.” California Energy Commission, PIER. 2006, p. 73. Accessible at
3 Internal Revenue Service, U.S. Dept. of Treasury, Electing the Section 179 Deduction. Accessible at
4 Internal Revenue Service, U.S. Dept. of Treasury, Table B-1. Table of Class Lives and Recovery Periods, Accessible at
5 26 USC 168; Title 26, Subtitle A, Chapter 1, Subchapter B, Part VI, Section168: Accelerated Cost Recovery System.

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