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The E-GRIM
 
 
The GRIM Model
  

GRIM evaluates the Policy and Measures impact
on the manufacturers performing a standard
annual cash flow analysis
  
 
GRIM model is composed of multiple worksheets whose purpose is to help identify the financial effects of various efficiency and other regulations on appliance manufacturers by calculating the present value of cash flows for the manufacturer or manufacturers. Cash flow is calculated entering shipment volumes and manufacturer prices as well as the elements of the relevant cost structure. Data are based on information from the engineering analysis, the consumer analysis, public financial data and industry profile.
GRIM spreadsheet uses a number of economic factors:

-annual expected revenues;
-cost of sales;
-selling and administration costs;
-taxes, changes in working capital, and capital
-expenditures related to new P&M

to calculate annual cash flows, from a base year to several years after the implementation of the policy measure. Industry NPV (net Present Value) is calculated by discounting the stream of annual cash flows
GRIM calculates cash flows by year and then determines the present value of these cash flows, both without (Base Case) and with energy policy measures (Policy Case) using the appropriate discount rate The Base Case scenario represents the business- as-usual Any new policy measure will affect the mix of appliances being sold in the market and the relevant price, costs and shipments. This is called the Policy Case scenario

  
 
Input - Output Examples
  
 
Basic Assumptions for Forecasting Italian Cold Appliance Production
  
 
 
 
Forecast of Italian Production of Cold Appliances:
Full Price Recovery Cash Flows
  
 
 
 
Forecast of Italian Production of Cold Appliances:
Net Present Value of Cash Flows