Devalue for inflation and that formula is only for the life of the note, not the life of the equipment.  So, if the note is less than 10 years or the equipment is held longer than 10 years there is an additional part of the calculation which I think is were the use inflation percentage enters into the picture.  It has been about 4 or 5 years since I did this and no longer have the spreadsheet I used at work.

Yes, you and I were close, my terminology is sometimes not the best.  I could always do, not always properly explain.