United States                   Office of Prevention, Pesticides,  EPA742-F-94-003
                       Environmental Protection        and Toxic Substances                 April 1994
                       Agency                       Washington, DC 20460

                       Office of Pollution Prevention and Toxics

                       SOFTWARE FACT SHEET

What i< fhe TJnk Between Pollution Prevention and Financial Analysis?
Current industry accounting practices often overlook hidden and less tangible costs of waste generation.  Moreover,
they often do not assign some product/process costs (i.e., waste management, compliance monitoring, and energy
costs, etc.) to the product/process responsible for generating them, but instead bury them in the "overhead" cost
pool.  This distorts the true cost of the product/process for businesses and prevents them from considering the full
financial benefits offered by investments in pollution prevention technologies.  A clearer inventory and allocation
of product/process costs will help businesses to see the economic benefits to be gained from pollution prevention

What is P2/FINANCEC Software?
P2/FINANCE' is a user friendly spreadsheet software program designed to guide companies in the data collection
and analysis essential to a clearer financial evaluation of pollution prevention projects.  P2/FINANCE is designed
to complement a company's existing project evaluation practices while ensuring that prevention investments receive
balanced and comprehensive treatment during the capital budgeting process. For companies or projects where no
formal budgeting guidelines are in place, P2/FINANCE offers a valuable starting point for introducing a Total Cost
Assessment (TCA) approach. The TCA approach differs from conventional practices in four key ways: a broader
inventory of costs and savings, allocation of all costs and savings to specific process and product lines rather than
to overhead accounts, expanded  time horizons for the capture  of long term benefits, and the use of profitability
indicators which incorporate the  time value of money.

What are the Software Outputs?
Users input their capital and operating costs for a current product/process and an alternative product/process, and
the  program outputs a fifteen year Cash Flow analysis and a Profitability Analysis Summary.  The Profitability
Analysis Summary uses three financial indicators: Net Present  Value (NPV), Internal Rate of Return (IRR), and
simple Payback. The time horizons used are 5,10, and IS years, as well as an additional year defined by the user.

What Is Needed to Use This  Software?
Computer requirements include an IBM compatible computer capable of running either Microsoft Excel Version
4.0 for Windows or Lotus l-2-3(Version 3.1 or higher) for DOS.  For ease of use, a 386 computer with a mouse
and a color monitor is recommended.  For printing the spreadsheets, a graphics printer such as an HP Usenet is
necessary.  P2/FINANCE is available on both 3.5 inch and 5.25 inch disks.

What Kind of User Assistance is Provided?
A manual comes with the software, complete with an in-depth example of one company's use of the program. A
P2/FINANCE User Hotline (617-266-5400) is staffed 9:00 A.M. - 5:00 P.M. Monday through Friday by Tellus

P2/FTNANCE Licensing Agreement
The U.S. Environmental Protection Agency has licensed P2/FINANCE from Tellus Institute to assist local, state,
regional, and federal government in encouraging pollution prevention. By licensing this software program, the EPA
is in no way endorsing it over any other available software tool, but is merely offering it to assist government  users
in identifying the financial  benefits of pollution prevention.  Local, state, regional, and federal agencies  may
reproduce the software and users manuals for their own use.  Reproduction or dissemination outside such agencies
is strictly prohibited.

c Tellus Institute

                          P2/F1NANCE ORDER FORM
HOW TO ORDER P2/FINANCE SOFTWARE: Check one of the following three categories
and follow the directions.
       State Directly:
             New Jersey: Deborah Milecofsky, NJ DEPE, Office of Pollution Prevention, 401 East
             State St., 2nd Floor East Wing, Trenton, NJ 08625-0402.
             Tel: 609-777-0376.
             Maine: Joyce Noel, Maine DEP, State House Station #17, Augusta, ME 04333.
             Tel: 207-287-7822.
             Massachusetts: Janet Clark, Massachusetts  Toxics Use Reduction Institute, Univ. of
             Mass, at Lowell, North Campus, Pinanski Hall Room 303, Lowell, MA 01854. Tel:
             1) Circle your government affiliation:
             Federal              Regional            State          Local
             2) Name:	
                City, State, Zip:	
               Telephone:	Fax number:	
              3) Circle the software version you need:
                    a) Microsoft Excel(Version 4.0 for Windows)
                    b) Lotus l-2-3(Version 3.1 or higher) for DOS
              4) Circle the size disk you need:
                    a) 3.5" disk                 b) 5.25" disk
              Fax your order to:     202-260-0178
              Mail your order to:    EPA's Pollution Prevention Information Clearinghouse,
                                  MC 3404, 401 M ST SW, Washington, D.C. 20460.
              Cost Information:     Available free of charge.
              For more information:  Call Pollution Prevention Information Clearinghouse,
       OTHERS: Contact the Tellus  Institute Directly:
              Address: Tellus Institute,  11 Arlington Street, Boston, MA, 02116-3411.
              Phone:  617-266-5400.
              Cost Information: Company licenses available for a fee.