feasibility assessment template
DESCRIPTION
Feasibility report template.TRANSCRIPT
Feasibility Assessment Template
Developed for: Ag Marketing Resource CenterDeveloped by: Phil Kenkel and Rodney Holcomb, Oklahoma State University
This templates is designed to assist you in assessing the feasibility of a projectInput cells are shaded in blue.Each sheet is currently protected allowing you to only input information in the input cells.The template can also be modified and expanded to meet your particular situation by turning off the protection.If you choose to modify the template we would advise you to save it under another name and retain the original for reference.
To get started go to the "Input Page"
For comments or suggestions contact: Phil Kenkel, [email protected] 405-744-9818'Rodney Holcomb, [email protected] 405-744-6272
For a Guide to Using the Feasibility Template Click On the Icon Below
MENUFORWARD TO INPUTS
Acrobat Document
Template Guide
Phil Kenkel and Rodney Holcomb, Oklahoma State University
This templates is designed to assist you in assessing the feasibility of a project
Each sheet is currently protected allowing you to only input information in the input cells.The template can also be modified and expanded to meet your particular situation by turning off the protection.If you choose to modify the template we would advise you to save it under another name and retain the original for reference.
For a Guide to Using the Feasibility Template Click On the Icon Below
INPUT CAPITAL STRUCTURE AND INPUT PRODUCTS, INITIAL VOLUME, MARGIN PER UNIT ANDEXPENSE INFORMATION ANTICIPATED SALES GROWTH RATEPercent Financed 50.00% Product Name FertilizerLong Term Interest Rate 8.00% Units tonsLoan Term 10 Initial Volume 20,000 Total Plant Property & Equip $1,245,000 Sales growth 1%Loan Amount $622,500 Price/unit $ 230.00 Working Capital $112,000 Short Term Interest Rate 7.00% Product Name C
Units lbsEquity Information Initial Volume 0 Common stock $522,500 Sales growth 0%Tradeable common stock (1=yes) 0 Price/unit $ - Revolving period (years) 7Dividend rate on common 8.0% Percent Member BusinessPrefered Stock $ 100,000 VARIABLE COST OF PRODUCTION PER UNITDividend Rate on Preferred Stock 12.0% Product Unit
Fertilizer tonsFeed tons
Tax Information C lbsProperty Tax as % of Prop and Plant 0.50% D lbsIncome Tax Rate 50.00%
There are also inputs on the "Personnel Expense", "Depreciation", & "Expense Projection" sheets
Payroll Information MENU% of Payroll Tax to Salaries 5.00%% of Retirement Tax to Salaries 15.00%% of Employee INS Tax to Salaries 10.00%Benefits as % of Salaries 30.00%Wage Inflation 1.00%
UtilitiesElectricity/month $ 1,000 Water/month $ 250 Gas/month $ 1,000 Telephone/month $ 200 Total Utilities $ 2,450
OtherExpense Inflation Rate 1.00%Maintenance as % of Plant & Equip 3.00%Insurance as % of Plant & Equip 2.00%Discount rate for NPV calculation 12.00%
Profit Allocation(all percentages relate to before tax income)Percentage to Unallocated Reserve 5%Percentage to Cash Patronage Refund 25%Percentage to Qualified Stock Patraonage Refund 35%
FORWARD TO PERSONNEL EXPENSEFORWARD TO DEPRECIATIONFORWARD TO EXPENSE PROJECTIONFORWARD TO OPERATIONS SUMMARYFORWARD TO RETURN ON INVESTMENTBACK TO INTRODUCTION
Percentage to Non-Qualifited Stock Patronage Refund 35%
INPUT PRODUCTS, INITIAL VOLUME, MARGIN PER UNIT ANDANTICIPATED SALES GROWTH RATE
Product Name FeedUnits tonsInitial Volume 5,000 Sales growth 1%Price/unit $ 200.00
Product Name DUnits lbsInitial Volume 0 Sales growth 0%Price/unit $ -
100%VARIABLE COST OF PRODUCTION PER UNIT
VC/unit $ 200.00 $ 180.00 $ - $ -
There are also inputs on the "Personnel Expense", "Depreciation", & "Expense Projection" sheets
FORWARD TO PERSONNEL EXPENSEFORWARD TO DEPRECIATIONFORWARD TO EXPENSE PROJECTIONFORWARD TO OPERATIONS SUMMARYFORWARD TO RETURN ON INVESTMENTBACK TO INTRODUCTION
Depreciation Return On Investment
Quality Percent 0%Discount Rate 0.00%
MENU
Sales ProjectionsYear 1 Year 2 Year 3 Year 4 Year 5
Fertilizer tons 20,000 20,200 20,402 20,606 20,812 Feed tons 5,000 5,050 5,101 5,152 5,203 C lbs 0 0 0 0 0 D lbs 0 0 0 0 0
25,000 25,250 25,503 25,758 26,015 Gross Sales ProjectionThis sheet summaries the volume and price and sales growth information from the input page. There is no input on this page.
Year 1 Year 2 Year 3 Year 4 Year 5FertilizerTotal Volume 20,000 20,200 20,402 20,606 20,812 Price/Unit $230.00 $230.00 $230.00 $230.00 $230.00 Gross Sales $4,600,000 $4,646,000 $4,692,460 $4,739,385 $4,786,778
FeedTotal Volume 5,000 5,050 5,101 5,152 5,203 Price/Unit $200.000 $200.000 $200.000 $200.000 $200.000 Gross Sales $1,000,000 $1,010,000 $1,020,100 $1,030,301 $1,040,604
CTotal Volume 0 0 0 0 0 Price/Unit $0.00 $0.00 $0.00 $0.00 $0.00 Gross Sales $0 $0 $0 $0 $0
DTotal Volume 0 0 0 0 0 Price/Unit $0.00 $0.00 $0.00 $0.00 $0.00 Gross Sales $0 $0 $0 $0 $0
TOTAL GROSS SALES $5,600,000 $5,656,000 $5,712,560 $5,769,686 $5,827,382
Production ExpenseFertilizer $ 4,000,000 $ 4,040,000 $ 4,080,400 $ 4,121,204 $4,162,416 Feed $ 900,000 $ 909,000 $ 918,090 $ 927,271 $ 936,544 C $ - $ - $ - $ - $ - D $ - $ - $ - $ - $ - TOTAL VARIABLE EXP. $ 4,900,000 $ 4,949,000 $ 4,998,490 $ 5,048,475 $5,098,960
BACK TO INPUTSFORWARD TO RETURN ON INVESTMENTFORWARD TO OPERATIONS SUMMARY
Year 6 Year 7 Year 8 Year 9 Year 1021,020 21,230 21,443 21,657 21,874
5,255 5,308 5,361 5,414 5,468 0 0 0 0 0 0 0 0 0 0
26,275 26,538 26,803 27,071 27,342
This sheet summaries the volume and price and sales growth information from the input page. There is no input on this page.
Year 6 Year 7 Year 8 Year 9 Year 10
21,020 21,230 21,443 21,657 21,874 $230.00 $230.00 $230.00 $230.00 $230.00
$4,834,646 $4,882,993 $4,931,823 $4,981,141 $5,030,952
5,255 5,308 5,361 5,414 5,468 $200.000 $200.000 $200.000 $200.000 $200.000
$1,051,010 $1,061,520 $1,072,135 $1,082,857 $1,093,685
0 0 0 0 0 $0.00 $0.00 $0.00 $0.00 $0.00
$0 $0 $0 $0 $0
0 0 0 0 0 $0.00 $0.00 $0.00 $0.00 $0.00
$0 $0 $0 $0 $0
$5,885,656 $5,944,513 $6,003,958 $6,063,998 $6,124,638
$4,204,040 $ 4,246,081 $ 4,288,541 $4,331,427 ### $ 945,909 $ 955,368 $ 964,922 $ 974,571 $ 984,317 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $5,149,949 $ 5,201,449 $ 5,253,463 $5,305,998 ###
MENU
This sheet calculates loan amortization and interest. There are no inputs on this sheet.
Total Investment $1,245,000 Long Term Interest Rate 8.00%Percent Financed 50.00%Loan Amount $622,500 Loan Term 10
Year 1 Year 2 Year 3 Year 4 Year 5Beginning Balance $622,500 $579,529 $533,121 $482,999 $428,869Interest Rate 8.00% 8.00% 8.00% 8.00% 8.00%Interest $49,800 $46,362 $42,650 $38,640 $34,309
Annual Payment $92,771 $92,771 $92,771 $92,771 $92,771Principal $42,971 $46,409 $50,121 $54,131 $58,461
Ending Balance $579,529 $533,121 $482,999 $428,869 $370,407
Working Capital $112,000 Short Term Interest Rate 7.00%Interest Amount $7,840
Total Interest Expense $57,640 $54,202 $50,490 $46,480 $42,149
BACK TO INPUTSFORWARD TO RETURN ON INVESTMENTFORWARD TO OPERATIONS SUMMARY
Year 6 Year 7 Year 8 Year 9 Year 10$370,407 $307,269 $239,079 $165,435 $85,899
8.00% 8.00% 8.00% 8.00% 8.00%$29,633 $24,582 $19,126 $13,235 $6,872
$92,771 $92,771 $92,771 $92,771 $92,771$63,138 $68,189 $73,644 $79,536 $85,899
$307,269 $239,079 $165,435 $85,899 $0
$37,473 $32,422 $26,966 $21,075 $14,712
MENU
This sheet allows you to input salaries and overtime assumptions for various positions.Benefit calculations are based on the percentage you entered on the "Input" sheet.
Occupation Salary Benefits Overtime% Overtime Total
Position #1 $60,000 $18,000 5% $ 3,900 $81,900
Position #2 $40,000 $12,000 5% $ 2,600 $54,600
Position #3 $25,000 $7,500 0% $ - $32,500
Position #4 $25,000 $7,500 0% $ - $32,500
Total Personnel $150,000 $45,000 $6,500 $201,500 Costs
BACK TO INPUTSFORWARD TO RETURN ON INVESTMENTFORWARD TO OPERATIONS SUMMARY
MENU
This Sheet summaries expenses. The only input is for "supplies and miscellaneous" expenses.
Labor Year 0 Year 1 Year 2 Year 3 Year 4Salaries $ 150,000 $ 151,500 $ 153,015 $ 154,545 Benefits $ 45,000 $ 45,450 $ 45,905 $ 46,364 Overtime $ 6,500 $ 6,565 $ 6,631 $ 6,697
Total Labor $ - $ 201,500 $ 203,515 $ 205,550 $ 207,606
Production Expenses $ 4,900,000 $ 4,949,000 $4,998,490 $ 5,048,475
Utilities $ 29,400 $ 29,694 $ 29,991 $ 30,291
Total Variable $ - $ 5,130,900 $ 5,182,209 $5,234,031 $ 5,286,371
FixedMaintenance $ 37,350 $ 37,724 $ 38,101 $ 38,482
Insurance $ 24,900 $ 25,149 $ 25,400 $ 25,654
Property Tax $ 6,225 $ 6,287 $ 6,350 $ 6,414
Depreciation $ 59,881 $ 83,901 $ 67,281 $ 55,629
Interest $ 57,640 $ 54,202 $ 50,490 $ 46,480
Total Fixed $ - $ 185,996 $ 207,263 $ 187,622 $ 172,659
OtherSupplies $ 25,000 $ 10,000 $ 10,100 $ 10,201 $ 10,303
Miscellaneous* $ 40,000 $ 20,000 $ 20,200 $ 20,402 $ 20,606
Total Other $ 65,000 $ 30,000 $ 30,300 $ 30,603 $ 30,909
Income Taxes $ 66,761 $ 66,734 $ 71,078 $ 75,397
Total Expenses $ 65,000 $ 5,413,657 $ 5,486,506 $5,523,334 $ 5,565,336
* Year 0 miscellaneous expenses may include legal fees, licenses, permits and other organizational expenses.
BACK TO INPUTSFORWARD TO RETURN ON INVESTMENTFORWARD TO OPERATIONS SUMMARY
This Sheet summaries expenses. The only input is for "supplies and miscellaneous" expenses.
Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 $ 156,091 $ 157,652 $ 159,228 $ 160,820 $ 162,429 $ 164,053 $ 46,827 $ 47,295 $ 47,768 $ 48,246 $ 48,729 $ 49,216 $ 6,764 $ 6,832 $ 6,900 $ 6,969 $ 7,039 $ 7,109
$ 209,682 $ 211,779 $ 213,896 $ 216,035 $ 218,196 $ 220,378
$ 5,098,960 $ 5,149,949 $ 5,201,449 $5,253,463 $ 5,305,998 $ 5,359,058
$ 30,594 $ 30,900 $ 31,209 $ 31,521 $ 31,836 $ 32,154
$ 5,339,235 $ 5,392,627 $ 5,446,554 $5,501,019 $ 5,556,029 $ 5,611,590
$ 38,867 $ 39,255 $ 39,648 $ 40,044 $ 40,445 $ 40,849
$ 25,911 $ 26,170 $ 26,432 $ 26,696 $ 26,963 $ 27,233
$ 6,478 $ 6,543 $ 6,608 $ 6,674 $ 6,741 $ 6,808
$ 48,153 $ 47,268 $ 46,425 $ 37,038 $ 27,672 $ 27,672
$ 42,149 $ 37,473 $ 32,422 $ 26,966 $ 21,075 $ 14,712
$ 161,558 $ 156,708 $ 151,534 $ 137,419 $ 122,895 $ 117,274
$ 10,406 $ 10,510 $ 10,615 $ 10,721 $ 10,829 $ 10,937
$ 20,812 $ 21,020 $ 21,230 $ 21,443 $ 21,657 $ 21,874
$ 31,218 $ 31,530 $ 31,846 $ 32,164 $ 32,486 $ 32,811
$ 78,825 $ 80,954 $ 83,057 $ 39,550 $ 45,963 $ 44,476
$ 5,610,836 $ 5,661,820 $ 5,712,990 $5,710,152 $ 5,757,374 $ 5,806,150
* Year 0 miscellaneous expenses may include legal fees, licenses, permits and other organizational expenses.0.00%
0.00%
MENU
This sheet summaries income, expenses and net profit. There are no inputs on this sheet
Gross SalesYear 0 Year 1 Year 2 Year 3 Year 4
Fertilizer $0 $4,600,000 $4,646,000 $4,692,460 $4,739,385 Feed $0 $1,000,000 $1,010,000 $1,020,100 $1,030,301 C $0 $0 $0 $0 $0 D $0 $0 $0 $0 $0
Total $0 $5,600,000 $5,656,000 $5,712,560 $5,769,686
ExpensesVariable $0 $5,130,900 $5,182,209 $5,234,031 $5,286,371 Fixed $0 $185,996 $207,263 $187,622 $172,659 Other $65,000 $30,000 $30,300 $30,603 $30,909
Total Expenses $65,000 $5,346,896 $5,419,772 $5,452,256 $5,489,939
EBIT ($65,000) $256,944 $225,469 $247,403 $261,399
Profit before Patronag ($65,000) $199,304 $171,267 $196,913 $214,919 Cash Patronage Refund $ 49,826 $ 42,817 $ 49,228 $ 53,730 Qualified Patronage Refund $69,756 $59,943 $68,920 $75,222 Non-Qualified Redeemed $0 $0 $0 $0 Before Tax Income $133,522 $133,468 $142,156 $150,795 Tax $ - $ 66,761 $ 66,734 $ 71,078 $ 75,397
After Tax Profit ($65,000) $66,761 $66,734 $71,078 $75,397
Estimate of Cash FlowsYear 0 Year 1 Year 2 Year 3 Year 4
After Tax Profits $ (65,000.00) $ 66,761 $ 66,734 $ 71,078 $ 75,397 Depreciation $ - $ 59,881 $ 83,901 $ 67,281 $ 55,629 Principle $ - $ 42,971 $ 46,409 $ 50,121 $ 54,131 Additional Asset Purchased $ - $ - $ - $ - Common stock div $41,800 $52,961 $51,391 $52,827Prefered dividend $12,000 $12,000 $12,000 $12,000Gross Cash Flow from Operations $196,398 $210,578 $207,279 $206,248Common stock redemption $ - $ - $ - $ - Qualified Redemption $ - $ - $ - $ - Non-Qualified Redemption $ - $ - $ - $ - Cash Flow $ (65,000) $ 99,627 $ 99,209 $ 93,766 $ 87,290
BACK TO INPUTSFORWARD TO RETURN ON INVESTMENT
Cumulative Cash Flow $ 34,627 $ 133,836 $ 227,602 $ 314,892 (does not consider increases or decreases in working capital loan)
Year 5 Year 6 Year 7 Year 8 Year 9 Year 10$4,786,778 $4,834,646 $4,882,993 $4,931,823 $4,981,141 $5,030,952 $1,040,604 $1,051,010 $1,061,520 $1,072,135 $1,082,857 $1,093,685
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$5,827,382 $5,885,656 $5,944,513 $6,003,958 $6,063,998 $6,124,638
$5,339,235 $5,392,627 $5,446,554 $5,501,019 $5,556,029 $5,611,590 $161,558 $156,708 $151,534 $137,419 $122,895 $117,274
$31,218 $31,530 $31,846 $32,164 $32,486 $32,811
$5,532,011 $5,580,866 $5,629,933 $5,670,602 $5,711,410 $5,761,674
$271,686 $275,609 $279,865 $334,466 $355,603 $356,533
$229,536 $238,136 $247,444 $307,499 $334,528 $341,821 $ 57,384 $ 59,534 $ 61,861 $ 76,875 $ 83,632 $ 85,455
$80,338 $83,348 $86,605 $107,625 $117,085 $119,637 $0 $0 $0 $69,756 $59,943 $68,920
$157,650 $161,909 $166,113 $79,100 $91,927 $88,951 $ 78,825 $ 80,954 $ 83,057 $ 39,550 $ 45,963 $ 44,476
$78,825 $80,954 $83,057 $39,550 $45,963 $44,476
Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 $ 78,825 $ 80,954 $ 83,057 $ 39,550 $ 45,963 $ 44,476 $ 48,153 $ 47,268 $ 46,425 $ 37,038 $ 27,672 $ 27,672 $ 58,461 $ 63,138 $ 68,189 $ 73,644 $ 79,536 $ 85,899 $ - $ - $ - $ - $ - $ -
$53,835 $54,654 $55,136 $13,857 $6,059 $9,143$12,000 $12,000 $12,000 $12,000 $12,000 $12,000
$207,315 $211,570 $216,087 $184,213 $190,720 $191,785 $ - $ - $ 522,500 $ - $ - $ - $ - $ - $ - $ 69,756 $ 59,943 $ 68,920 $ - $ - $ - $ 69,756 $ 59,943 $ 68,920 $ 83,019 $ 81,777 $ (441,738) $ 14,955 $ 33,182 $ 15,824
$ 397,911 $ 479,688 $ 37,950 $ 52,905 $ 86,086 $ 101,910
Average EBIT$286,498
This Sheet Summaries The Changes in Owner's Equity. There are no inputs on this pageYear 0 Year 1 Year 2 Year 3
Common Stock $ 522,500 $ 522,500 $ 522,500 $ 522,500 Qualified Stock Credits $ - $ 69,756 $ 59,943 $ 68,920 Non Qualified Stock Credits $ - $ 69,756 $ 59,943 $ 68,920 Preferred Stock $ 100,000 $ 100,000 $ 100,000 $ 100,000 Unallocated Equity $9,965 $18,529 $28,374
Total Members Equity $ 622,500 $ 771,978 $ 760,916 $ 788,713
Equity CalculationsCommon Stock $522,500 Common Stock Redeemed 0 0 0Total Common Stock $522,500 $522,500 $522,500 $522,500
Qualified Stock Credits Issued $69,756 $59,943 $68,920 Qualified Stock Credits Redeemed 1 yr rev $ - $ - Qualified Stock Credits Redeemed 2 yr rev $ - Qualified Stock Credits Redeemed 3 yr revQualified Stock Credits Redeemed 4 yr revQualified Stock Credits Redeemed 5 yr revQualified Stock Credits Redeemed 6 yr revQualified Stock Credits Redeemed 7 yr revQualified Stock Credits Redeemed 8 yr revQualified Stock Credits Redeemed 9 yr revQualified Stock Credits Redeemed 10 yr revTotal Qualified Redeemed $ - $ - $ - Total Qualified Stock Credits $69,756 $59,943 $68,920
Non-Qualified Stock Credits Issued $69,756 $59,943 $68,920 Non-Qualified Stock Credits Redeemed 1 yr rev $ - $ - Non-Qualified Stock Credits Redeemed 2 yr rev $ - Non-Qualified Stock Credits Redeemed 3 yr revNon-Qualified Stock Credits Redeemed 4 yr revNon-Qualified Stock Credits Redeemed 5 yr revNon-Qualified Stock Credits Redeemed 6 yr revNon-Qualified Stock Credits Redeemed 7 yr revNon-Qualified Stock Credits Redeemed 8 yr revNon-Qualified Stock Credits Redeemed 9 yr revNon-Qualified Stock Credits Redeemed 10 yr revTotal Non-Qualified Redeemed $ - $ - $ - Total Non-Qualified Stock Credits $69,756 $59,943 $68,920
Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 $ 522,500 $ 522,500 $ 522,500 $ - $ - $ - $ - $ 75,222 $ 80,338 $ 83,348 $ 86,605 $ 37,868 $ 57,141 $ 50,718 $ 75,222 $ 80,338 $ 83,348 $ 86,605 $ 37,868 $ 57,141 $ 50,718 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000
$39,120 $50,597 $62,504 $74,876 $90,251 $106,977 $124,068
$ 812,064 $ 833,772 $ 851,699 $ 348,087 $ 265,987 $ 321,260 $ 325,504
0 0 0 522500 0 0 0$522,500 $522,500 $522,500 $0 $0 $0 $0
$75,222 $80,338 $83,348 $86,605 $107,625 $117,085 $119,637 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ 69,756 $ 59,943 $ 68,920
$ - $ - $ -
$ - $ - $ - $ - $ 69,756 $ 59,943 $ 68,920 $75,222 $80,338 $83,348 $86,605 $37,868 $57,141 $50,718
$75,222 $80,338 $83,348 $86,605 $107,625 $117,085 $119,637 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ 69,756 $ 59,943 $ 68,920
$ - $ - $ -
$ - $ - $ - $ - $ 69,756 $ 59,943 $ 68,920 $75,222 $80,338 $83,348 $86,605 $37,868 $57,141 $50,718
38%
MENU
This sheet calculates depreciation. You enter descriptions and values for buildings, equipment and other property.
DepreciationBuildings 39 year Straight LineSpecial Purpose Buildings 10 year Straight LineEquipment and Heavy Rolling7 Yr MACRS with half year conventionLight Trucks and Vehicles 5 Yr MACRS with half year convention
BuildingsDescription Value Salvage
Processing Plant $ 1,000,000 $ 30,000 #2 ` #3#4#5Total Buildings $ 1,000,000 $ 30,000
Equipment and Heavy Rolling StockDescription Value
Feed mill $ 50,000 Pellet mill $ 50,000 Load out equipment $ 10,000 Conveying and metering equipment $ 50,000 Feed Trucks $ 50,000 Total Equip and Heavy Rolling Stock $ 210,000
Total Plant Property and Equipment $ 1,245,000 Land $ - Total Land, Plant Property and Equipment $ 1,245,000
Additional Purchases 1 2 3 4
Annual Total Depreciation
Year 1 2 3 4Buildings $24,872 $24,872 $24,872 $24,872 Special Purpose Buildings $2,000 $2,800 $2,800 $2,800 Equipment and Heavy Rolling S $30,009 $51,429 $36,729 $26,229 Light Truck and Vehicles $3,000 $4,800 $2,880 $1,728 Additional Depreciation 0 0 0 0Total Depreciation $59,881 $83,901 $67,281 $55,629
BACK TO INPUTSFORWARD TO RETURN ON INVESTMENTBACK TO OPERATION SUMMARY
Buildings 39 year Straight LineSpecial Purpose Buildings 10 year with percentage from tableEquipment and Heavy Rolling7 year with percentage from tableLight Trucks and Vehicles 5 year with percentage from table
BuildingsCost $1,000,000 Life 39Salvage $30,000 Period 39Depreciation per year for 39 ye $24,872
Special Purpose BuildingsCost $20,000 Life 10
Year Depreciation Rate1 $2,000 10%2 $2,800 14%3 $2,800 14%4 $2,800 14%5 $2,800 14%6 $2,800 14%7 $2,800 14%8 $2,800 14%9 $2,800 14%
10 $2,800 14%
Equipment and Heavy Rolling StockYear Depreciation Rate
1 $30,009 14.29%2 $51,429 24.49%3 $36,729 17.49%4 $26,229 12.49%5 $18,753 8.93%6 $18,732 8.92%7 $18,753 8.93%8 $9,366 4.46%
Light Trucks and VehiclesYear Depreciation Rate
1 $3,000 20.00%2 $4,800 32.00%3 $2,880 19.20%4 $1,728 11.52%5 $1,728 11.52%6 $864 5.76%
This sheet calculates depreciation. You enter descriptions and values for buildings, equipment and other property.
Special Purpose BuildingsDescription Value
Outbuilding $ 10,000 Storage shed $ 10,000 #3#4#5Total Special Purpose Building $ 20,000
Light Trucks and VehiclesDescription Value
Delivery truck $ 5,000 Company car $ 5,000 Forklifts $ 5,000
Total Light Trucks and Vehicles $ 15,000
5 6 7 8 9 10
5 6 7 8 9 10$24,872 $24,872 $24,872 $24,872 $24,872 $24,872
$2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $18,753 $18,732 $18,753 $9,366
$1,728 $864 0 0 0 0 0 0
$48,153 $47,268 $46,425 $37,038 $27,672 $27,672
0.0613
MENU
This sheet summaries the feasibility of the project. It provides net present value, benefit cost ratio and internal rate of returnThe only input is the discount rate.
Discount Rate 12.00%
Year 0 1 2 3Gross Margin $5,600,000 $5,656,000 $5,712,560 Discount Factor 1 0.8928571429 0.7971938776 0.7117802478PV of Income $0 $5,000,000 $4,508,929 $4,066,087
Total Expense $65,000 $5,413,657 $5,413,657 $5,486,506 Less Depreciation and Term Interest $109,681 $130,263 $109,930
Cash Expenses $1,310,000 $5,303,976 $5,283,394 $5,376,575 Discount Factor 1 0.8928571429 0.7971938776 0.7117802478PV of Expenses $1,310,000 $4,735,693 $4,211,889 $3,826,940
Benefits Less Costs ($1,310,000) $296,024 $372,606 $335,985 PV Benefits Less PV Costs ($1,310,000) $264,307 $297,040 $239,147
Total PV of Income $32,802,827Total PV of Expenses $32,150,267 Net Present Value $652,560 Internal Rate of Return 22.80%PV Benefit/PV Cost Ratio 1.02Return on Assets -0.90% 15.86% 13.49% 15.31%(after tax income/total PPE investment)
Average Return on Assets 16.61%Payback Period (years) 6(payback period only displayed if less than 10 years)
BACK TO INPUTSBACK TO OPERATION SUMMARY
This sheet summaries the feasibility of the project. It provides net present value, benefit cost ratio and internal rate of return
4 5 6 7 8 9 10$5,769,686 $5,827,382 $5,885,656 $5,944,513 $6,003,958 $6,063,998 $6,124,638
0.6355180784 0.5674268557 0.5066311212 0.4523492153 0.403883228 0.360610025 0.3219732366$3,666,740 $3,306,613 $2,981,857 $2,688,996 $2,424,898 $2,186,738 $1,971,969
$5,523,334 $5,565,336 $5,610,836 $5,661,820 $5,712,990 $5,710,152 $5,757,374 $94,269 $82,462 $76,900 $71,006 $56,164 $40,907 $34,544
$5,429,065 $5,482,874 $5,533,935 $5,590,814 $5,656,826 $5,669,245 $5,722,830 0.6355180784 0.5674268557 0.5066311212 0.4523492153 0.403883228 0.360610025 0.3219732366
$3,450,269 $3,111,130 $2,803,664 $2,529,000 $2,284,697 $2,044,387 ###
$340,620 $344,508 $351,721 $353,699 $347,132 $394,752 $401,807 $216,470 $195,483 $178,193 $159,995 $140,201 $142,352 $129,371
16.49% 17.46% 18.02% 15.28% 22.97% 24.88% 23.88%
6 7 8 9 10
Analysis of Member Return This Sheet Summaries the Member's Return. The only inputs are the tax rates
Member's Income Tax RateInitial Investment $522,500 Capital Gains Tax Rate
Year 1 Year 2 Year 3 Year 4 Year 5Cash Patronage $ 49,826 $ 42,817 $ 49,228 $ 53,730 $ 57,384 Stock Dividends $ 41,800 $ 52,961 $ 51,391 $ 52,827 $ 53,835
Qualified Stock Received $ 69,756 $ 59,943 $ 68,920 $ 75,222 $ 80,338 Non-Qualified Stock Redeemed $ - $ - $ - $ - $ - Qualified Stock Redeemed $ - $ - $ - $ - $ -
Sale of Stock
Taxable Income $ 161,383 $ 155,721 $ 169,539 $ 181,779 $ 191,557 Taxable Gain on StockMember's Income Tax $ 48,415 $ 46,716 $ 50,862 $ 54,534 $ 57,467
After Tax Cash Income $ 43,211 $ 49,061 $ 49,758 $ 52,023 $ 53,752
Return on Investment 8% 9% 10% 10% 10%
Average ROI for Common 15%
Cash flows ($522,500) $ 49,061 $ 49,758 $ 52,023 $ 53,752
Net Present Value: Common ($120,591)Internal Rate of Return:comm 6%
Preferred Stock ReturnDividends 12000 12000 12000 12000 12000Return on Investment 12% 12% 12% 12% 12%Average ROI Preferred 12%
This Sheet Summaries the Member's Return. The only inputs are the tax rates
30%28%
Year 6 Year 7 Year 8 Year 9 Year 10 $ 59,534 $ 61,861 $ 76,875 $ 83,632 $ 85,455 $ 54,654 $ 55,136 $ 13,857 $ 6,059 $ 9,143
$ 83,348 $ 86,605 $ 107,625 $ 117,085 $ 119,637 $ - $ - $ 69,756 $ 59,943 $ 68,920 $ - $ - $ 69,756 $ 59,943 $ 68,920
$ -
$ 197,536 $ 203,602 $ 268,113 $ 266,719 $ 283,155 $ -
$ 59,261 $ 61,081 $ 80,434 $ 80,016 $ 84,946
$ 54,927 $ 55,916 $ 149,811 $ 129,562 $ 147,491
11% 11% 29% 25% 28%
$ 54,927 $ 55,916 $ 149,811 $ 129,562 $ 147,491
12000 12000 12000 12000 1200012% 12% 12% 12% 12%