UEC Net Present Value
RCED-92-294R: Published: Sep 23, 1992. Publicly Released: Oct 23, 1992.
- Full Report:
Pursuant to a congressional request, GAO provided information on cash flow projections for the proposed Uranium Enrichment Corporation (UEC), as envisioned by proposed legislation. GAO noted that: (1) it adjusted Department of Energy estimates for revenue and expenses associated with uranium enrichment operations from 1993 through 2011 to project the present value of UEC net operating income to be about $5.2 billion; (2) any estimate of earnings from uranium enrichment operations is subject to major uncertainties because of the inherent difficulty of determining the amount and selling price of enrichment services; and (3) it computed the net present value of UEC payments to the Treasury for loans, royalties, leases, and dividends to be about $3.2 billion, but that projection is also subject to major uncertainties.