8. Conclusions

CV [Earned Value (EV) Actual Cost (AC)] EV = % of worth completed x Budgeted cost AC = what has been spent on the project

In this method, plant-wise profit analysis is carried out by the auditor and the estimated gain adjusted with the inflationary effect is compared with actual. An important point to note here is that even if the aggregates of gains (realized and estimated) are the same there can be wide variations for individual projects, indi-

This method is developed around four schedules described below. These schedules can provide the management with the information it needs to find engineering,

a. Profit variance analysis schedule: this schedule is prepared for the calculation of profit variance between projected and the actual project results. The information for the "projected" column is obtained from the approved capital expenditure request. The information for the "actual" column is obtained from regular accounting sources. Supplementary schedules are required to itemize and explain the basis of calculation of revenues, costs and expenses need to be given.

b.Cash flow and financial criteria variance analysis schedule: this is used to illustrate project cash flow and return variances between the projected and actual results. The approved capital expenditure request is again used to provide information for the "projected" column and regular accounting

c. Project cash flow schedule (projected and actual): these are used to show the projected and actual cash flows of the project. They illustrate the timing of cash flows to compute payback and to provide the net period cash flow information required for the IRR calculation. Each cash flow entry is made according to the time it was projected to be incurred or was actually incurred. The period cash flows are for individual quarters whereas the cumulative cash flows represent all cash flow for the project. The payback point is reached when the cumulative

d.Supplementary schedules: the supplementary schedules provide explanations

Discounting factor technique give only a single value of the NPV which is for the whole life of the project. The IRR is the average return during the life. But at the time of conducting the energy audit, the major part of the project life is not completed. Then how can we compare the actual with the total net present value or average internal rate of return? A uniform annual series cannot be considered because it is an average figure and the project need not offer and NPV at a constant rate over its life. The concept of e present value of depreciation is used in some techniques for the calculation of the year-wise NPV and IRR. Present value

7.2 Profit variance analysis

Zero and Net Zero Energy

cating the need for further investigations

sources for the "actual" column.

net cash flow equals zero.

for the significant variances.

142

7.4 Present value depreciation technique

7.3 Cash flow and financial criteria analysis

operational and administrative costing faults of past projects.

There are numerous literatures that have dealt with this subject of building energy audit. This particular text emphasizes economic assessment moving from a theoretical review of the subject of building energy analysis with respect to thermal conditions of the building envelope. The process of obtaining data for building energy audit was spelt out from the review of prevalent building information modeling software which were analyzed to obtain actual and project energy loads. The point of divergence of the two measures were econometrically reviewed to ascertain financial control mechanism, providing information for future capital expenditure decision, impacts on proposals for capital investments.

### Acknowledgements

I am indebted of thanks and gratitude to authors whose text materials were used to form the theoretical bedrock for economic analysis particularly of mention is the Kreider J.F. and Rabl A., Jangalve, A., Kamble, V., Gawandi, S., and Ramani, N. and Patel, B.M. I cannot thank them enough.

### Conflict of interest

This text has no conflict of interest declaration.
