| Basic Information: | |||||||||
| Annual average storage (Tonnes) | $ 100,000 | Cost of land | $ 52,500 | ||||||
| Revenue per tonne | $ 5 | Storage andhandling facilities | $ 850,000 | ||||||
| Variable cost per tonne | $ 1 | Weighbridge | $ 150,000 | ||||||
| Additional transaction costs | $ 47,500 | ||||||||
| Tonnes passes from weighbridge | $ 72,000 | Total fund requirement | $ 1,100,000 | ||||||
| Revenue per tonne | $ 0 | ||||||||
| Variable cost per tonne | $ 0 | Additional capital required | $ 410,000 | ||||||
| Annual recalibration of the bridge | $ 5,000 | Life of the project | 10 | ||||||
| Tax rate | 30.00% | Loan to value ratio | 80% | ||||||
| Inflation rate | 1.50% | Loan amount | $ 880,000 | ||||||
| Discounting rate | 10.00% | Annual interest rate | 3.00% | ||||||
| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Revenue from storage | $ 475,000 | $ 482,125 | $ 489,357 | $ 496,697 | $ 504,148 | $ 511,710 | $ 519,386 | $ 527,176 | |
| Revenue from weighbridge | $ 14,400 | $ 14,616 | $ 14,835 | $ 15,058 | $ 15,284 | $ 15,513 | $ 15,746 | $ 15,982 | |
| Total revenue | $ 489,400 | $ 496,741 | $ 504,192 | $ 511,755 | $ 519,431 | $ 527,223 | $ 535,131 | $ 543,158 | |
| Variable storage costs | $ -100,000 | $ -101,500 | $ -103,023 | $ -104,568 | $ -106,136 | $ -107,728 | $ -109,344 | $ -110,984 | |
| Variable cost of labour | $ -7,200 | $ -7,308 | $ -7,418 | $ -7,529 | $ -7,642 | $ -7,756 | $ -7,873 | $ -7,991 | |
| Depreciation | $ -110,000 | $ -110,000 | $ -110,000 | $ -110,000 | $ -110,000 | $ -110,000 | $ -110,000 | $ -110,000 | |
| Profit before interest and tax | $ 272,200 | $ 277,933 | $ 283,752 | $ 289,658 | $ 295,653 | $ 301,738 | $ 307,914 | $ 314,183 | |
| Interest expense | $ -26,400 | $ -24,097 | $ -21,725 | $ -19,282 | $ -16,766 | $ -14,174 | $ -11,504 | $ -8,754 | |
| Profit before tax | $ 245,800 | $ 253,836 | $ 262,027 | $ 270,376 | $ 278,888 | $ 287,564 | $ 296,410 | $ 305,428 | |
| Provision for tax | $ -73,740 | $ -76,151 | $ -78,608 | $ -81,113 | $ -83,666 | $ -86,269 | $ -88,923 | $ -91,629 | |
| Profit after tax | $ 172,060 | $ 177,685 | $ 183,419 | $ 189,263 | $ 195,221 | $ 201,295 | $ 207,487 | $ 213,800 | |
| Add: Depreciation | $ 110,000 | $ 110,000 | $ 110,000 | $ 110,000 | $ 110,000 | $ 110,000 | $ 110,000 | $ 110,000 | |
| Add: Interest | $ 26,400 | $ 24,097 | $ 21,725 | $ 19,282 | $ 16,766 | $ 14,174 | $ 11,504 | $ 8,754 | |
| Cash flow from operations | $ 308,460 | $ 311,782 | $ 315,144 | $ 318,545 | $ 321,987 | $ 325,469 | $ 328,991 | $ 332,554 | |
| Initial investment | $ -1,510,000 | ||||||||
| Free Cash Flow | $ -1,510,000 | $ 308,460 | $ 311,782 | $ 315,144 | $ 318,545 | $ 321,987 | $ 325,469 | $ 328,991 | $ 332,554 |
| Net present value | $ 463,616 | Comment: | |||||||
| Internal rate of return | 16.62% | Net present value is positive, indicates capital appreciation | |||||||
| Payback period | 4.80 | IRR is greater than the required rate of return and hence, the project can be accepted | |||||||
| Profitability index | 1.31 | ||||||||
| Accounting rate of return | 13.16% |
| Investment details | ** Please enable iterative calculation from excel option, otherwise the model will not be working for the variable interest loan ammortization model. | ||||||||||||
| Cost of land | 52500 | ||||||||||||
| Storage andhandling facilities | 850000 | ** If it crashes then start the number of year from 1, and increase it gradually, then it will be working smoothly. | |||||||||||
| Weighbridge | 150000 | ||||||||||||
| Additional transaction costs | 47500 | ||||||||||||
| Total fund requirement | 1100000 | ||||||||||||
| Fixed interest loan amortization schedule | Variable interest loan amortization schedule | ||||||||||||
| Loan information | Summary | Loan information | Summary | ||||||||||
| Loan to valuation ratio | 80% | Annual payments | $ 104,063 | Loan to valuation ratio | 80% | Annual payments | $ 111,654 | ||||||
| Loan Amount | 880000 | Loan Amount | 880000 | ||||||||||
| Interest rate per annum | 3.00% | Total interest payment | $ 151,628 | Interest rate at beginning | 3.00% | Total interest payment | $ 227,538 | ||||||
| Loan terms | 10 | Total service fees | $ 9,000 | Increment in interest | 0.50% | Total service fees | $ 9,000 | ||||||
| Service fees | 900 | Total cost of financing | $ 160,628 | Loan terms | 10 | Total cost of financing | $ 236,538 | ||||||
| Service fees | 900 | Interest rate at the end | 7.50% | ||||||||||
| PMT No | Beginning balance | Interest | Service fees | Principle repayment | Total payment | Ending balance | PMT No | Beginning balance | Interest | Service fees | Principle repayment | Total payment | Ending balance |
