The projected operating cash flows in Table 8.3 form the basis for measuring the expected rates of return to Engineering Firm, Local Utility, and the passive equity investors. Engineering Firm and Local Utility invest identical amounts. Each has the same expected rate of return; I refer to it as the "return to sponsor equity." I refer to the expected rate of return to the passive equity investors as the "return to limited partnership equity." The latter is the easier of the two to calculate, so I consider it first.