Situation: Hotco selling burner to CA plant
Transaction details : CA plant will pay X+Y amount (say). This breakdown can be explained as below:
X = Cost savings of the plant using old burner
Y = Future cost savings using hotco burner. (hotco is very confident about the savings as their burners are really efficient)
Now, the argument concludes with a plan whereby the CA plant will make an estimated payment(unrealised amount) & this amount will be adjusted on the actual cost savings after 2 years.
...
Transaction details : CA plant will pay X+Y amount (say). This breakdown can be explained as below:
X = Cost savings of the plant using old burner
Y = Future cost savings using hotco burner. (hotco is very confident about the savings as their burners are really efficient)
Now, the argument concludes with a plan whereby the CA plant will make an estimated payment(unrealised amount) & this amount will be adjusted on the actual cost savings after 2 years.
...