KEY VARIABLES Market Pricing Efficiency Pricing Market Pricing Efficiency Pricing

Investment Costs No. Price Cost Price Cost Operating Costs No. Price Cost % Price Cost
(i) Fixed Investment (units) ($) ($) Rent on land (Ha) 100 30 3,000 Rent op. cost 0% 0.00 0
Farm equipment (units) 4 100,000 400,000 90,909 363,636 Fuel (litres) 2,500 0.7 1,750 Fuel tax 10% 0.64 1,591
Vehicles (units) 3 30,000 90,000 25,000 75,000 Seeds (Kg) 250 20 5,000 Seed subsidy 25% 26.67 6,667
Buildings (m2) 250 1,000 250,000 1,000 250,000 Fertilizers (tonnes) 3 500 1,500 Fertilizer Subsidy 30% 714.29 2,143
TOTAL 740,000 688,636 Insecticides (litres) 3,000 30 90,000 Insecticide subsidy 20% 37.50 112,500
(ii) Working Capital Water (ML) 900 20 18,000 Water subsidy 40% 33.33 30,000
Fertilizer stocks (tons) 2 500 1,000 714.29 1,429 Spares 12 1,000 12,000 Spares duty 15% 869.57 10,435
Insecticide stocks (Litres) 2500 30 75,000 37.50 93,750 Casual labor (days) 100 60 6,000 Labour op. cost 20% 12.00 1,200
Equipment spare parts (units 10 1,000 10,000 870 8,696 Administration (/month) 12 1000 12,000 Administration (/month) 12,000
Fuel stocks (Litres) 500 0.7 350 0.64 318 Insurance (p.a.) 1 8,263.5 8,263 Insurance (p.a.) 8,263.5 8,263
TOTAL 86,350 104,192 Management (/month) 12 3,000 36,000 Management 3,000 36,000
(iii) Salvage Value 10% 74,000 68,864 Miscellaneous 1 7,700 7,700 Miscellaneous 7,700 7,700
TOTAL (Market prices) 201,213 TOTAL (Shadow Prices) 228,499
Depreciation Life(yrs) Amount p.a. Revenues
Equipmnt. 10 40,000 Apples (tons) 100 1,000 100,000 External Costs 10,000
Vehicles 5 18,000 Peaches (tons) 90 1,250 112,500
Buildings 20 12,500 Pears (tons) 75 1,500 112,500 Import duties
Financing Amount Interest Life (yrs) TOTAL 325,000 Equipment 10%
Loan 700,000 3.5% 10 Vehicles 20%
Overdraft 40,000 5.0% 4 Capacity Output
Discount rate = 5.0% 10.0% 15.0% Year 2016 2017 2018 2019+ Conversion factor 1000
Tax rate on profits = 25.0% % 25% 50% 75% 100%
PART 1: FINANCIAL ANALYSIS

SALES/REVENUES 2015 2016

Year 0 1
Production capacity 25%
Sales/Revenues 81.3

OPERATING COSTS
Year 0 1
Production capacity 25%
Operating costs 50.3

DEPRECIATION SCHEDULE
Year 0 1
Equipment 40.0
Machines 18.0
Building 12.5
Total depreciation 70.5

LOAN SCHEDULE (INVESTMENT)

Year 0 1
Beginning debt 700.0
Interest charges 24.5
Debt payments 84.2
Principal 59.7
Interest 24.5
Ending debt 700 640.3

LOAN SCHEDULE (OVERDRAFT 2015 2016

Năm 0 1
Beginning debt
Interest charges
Debt payments
Principal
Interest
Ending debt 40

DEBT FINANCE FLOW

Year 0 1
Loan receipts 700.0 40
Loan repayments 0.0 84.2
Debt finance flow 700.0 -44.2
WORKING CAPITAL
Year 0 1
Working capital 0 86.4
Changes in working capital 0 86.4

INCOME STATEMENT
Year 0 1
Sales/Revenues 81.3
Operating costs 50.3
EBITDA 30.9
Depreciation 70.5
EBIT -39.6
Interest expenses 24.5
EBT -64.1
Income tax -16.0

MARKET CASH FLOWS

Year 0 1
Receipts 0.0 81.3
Sales/Revenues 81.3
Liquidation value
Expenditures 740.0 136.7
Fixed investment cost 740.0
Changes in working capital 0 86.4
Operating costs 50.3
Market net cash flow -740.0 -55.4
Income tax -16.0
Market net cash flow (TIPV) -740.0 -39.4

PRIVATE CASH FLOW

Year 0 1
Market net cash flow (TIPV) -740.0 -39.4
Debt finance flow 700.0 -44.2
Private net cash flow (EPV) -40.0 -83.6

Year 0 1
Net cash flow (Lenders)

Discount rates 5% 10%

NPV(Project) 609.56 100.40
NPV(TIPV) 433.26 7.79
NPV(EPV) 483.33 196.37
 NPV(Lenders) 0.00 0.00
NPV(Direct taxes) 176.30 92.61
Check for consistency 659.63 288.98

CAPITAL STRUCTURE Opportunity cost

Investment financing 700,000 3.5%
Overdraft 40,000 5.0%
Equity 40,000 10%
780,000 3.9%
wacc 3.9%

FINANCIAL DISCOUNT RATES

Năm 0 1
Market net cash flow (TIPV) -740.0 -39.4
Value of the project 1309.0 1399.6
Debt capital (Investment) 700 640
Debt capital (Overdraft) 0 40
Equity capital 609.0 719.2
D1/E 1.1 0.9
D2/E 0.0 0.1
%D1 53.5% 45.8%
%D2 0.0% 2.9%
%E 46.5% 51.4%
re 4.4% 4.2%
wacc 3.9% 3.9%
Discount factor, re 1 0.96
Discount factor, wacc 1 0.96

PV(EPV) = NCF_EPV * DF_EPV -40.0 -80.1

PV(TIPV) = NCF_TIPV * DF_TIPV -740.0 -37.9

NPV(EPV) 569.0
NPV(TIPV) 569.0

IRR(EPV) 19.1%
IRR(TIPV) 10.1%

DEBT SERVICE COVERAGE RATIOS (DSCR)

Year 0 1
Net cash flow (TIPV) -39.4
Debt Repayments 84.2
DSCR -0.468
Average DSCR 1.009
PAYPACK PERIOD
Year 0 1
Cumulated PV - NCF (TIPV) -740.0 -777.9
Cumulated PV - NCF (EPV) -40.0 -120.1
PAYPACK PERIOD (TIPV) 10 years 7.3 months
PAYPACK PERIOD (EPV) 10 years 5.2 months
 2017 2018 2019 2020 2021 2022 2023
2 3 4 5 6 7 8
50% 75% 100% 100% 100% 100% 100%
162.5 243.8 325.0 325.0 325.0 325.0 325.0

2 3 4 5 6 7 8
50% 75% 100% 100% 100% 100% 100%
100.6 150.9 201.2 201.2 201.2 201.2 201.2

2 3 4 5 6 7 8
40.0 40.0 40.0 40.0 40.0 40.0 40.0
18.0 18.0 18.0 18.0
12.5 12.5 12.5 12.5 12.5 12.5 12.5
70.5 70.5 70.5 70.5 52.5 52.5 52.5

2 3 4 5 6 7 8
640.3 578.6 514.7 448.5 380.0 309.2 235.8
22.4 20.3 18.0 15.7 13.3 10.8 8.3
84.2 84.2 84.2 84.2 84.2 84.2 84.2
61.8 63.9 66.2 68.5 70.9 73.3 75.9
22.4 20.3 18.0 15.7 13.3 10.8 8.3
578.6 514.7 448.5 380.0 309.2 235.8 159.9

2017 2018 2019 2020

2 3 4 5 6 7 8
40.0 40.0 40.0 40.0
2.0 2.0 2.0 2.0
2.0 2.0 2.0 42.0
40.0
2.0 2.0 2.0 2.0
40.0 40.0 40.0 0.0

2 3 4 5 6 7 8

86.2 86.2 86.2 126.2 84.2 84.2 84.2

-86.2 -86.2 -86.2 -126.2 -84.2 -84.2 -84.2
 2 3 4 5 6 7 8
86.4 86.4 86.4 86.4 86.4 86.4 86.4
0.0 0.0 0.0 0.0 0.0 0.0 0.0

2 3 4 5 6 7 8
162.5 243.8 325.0 325.0 325.0 325.0 325.0
100.6 150.9 201.2 201.2 201.2 201.2 201.2
61.9 92.8 123.8 123.8 123.8 123.8 123.8
70.5 70.5 70.5 70.5 52.5 52.5 52.5
-8.6 22.3 53.3 53.3 71.3 71.3 71.3
24.4 22.3 20.0 17.7 13.3 10.8 8.3
-33.0 0.1 33.3 35.6 58.0 60.5 63.0
-8.3 0.0 8.3 8.9 14.5 15.1 15.8

2 3 4 5 6 7 8
162.5 243.8 325.0 325.0 325.0 325.0 325.0
162.5 243.8 325.0 325.0 325.0 325.0 325.0

100.6 150.9 201.2 201.2 201.2 201.2 201.2

0 0.0 0 0.0 0 0.0 0

100.6 150.9 201.2 201.2 201.2 201.2 201.2
61.9 92.8 123.8 123.8 123.8 123.8 123.8
-8.3 0.0 8.3 8.9 14.5 15.1 15.8
70.1 92.8 115.5 114.9 109.3 108.7 108.0

2 3 4 5 6 7 8
70.1 92.8 115.5 114.9 109.3 108.7 108.0
-86.2 -86.2 -86.2 -126.2 -84.2 -84.2 -84.2
-16.0 6.6 29.3 -11.3 25.1 24.5 23.9

2 3 4 5 6 7 8

15%
-178.35
-227.89
59.62
 0.00
49.54
109.16

Weight
0.90
0.05
0.05

2 3 4 5 6 7 8
70.1 92.8 115.5 114.9 109.3 108.7 108.0
1384.1 1345.5 1282.6 1217.9 1156.2 1092.7 1027.4
579 515 448 380 309 236 160
40 40 40 0 0 0 0
765.6 790.8 794.1 837.8 847.0 856.9 867.5
0.8 0.7 0.6 0.5 0.4 0.3 0.2
0.1 0.1 0.1 0.0 0.0 0.0 0.0
41.8% 38.3% 35.0% 31.2% 26.7% 21.6% 15.6%
2.9% 3.0% 3.1% 0.0% 0.0% 0.0% 0.0%
55.3% 58.8% 61.9% 68.8% 73.3% 78.4% 84.4%
4.2% 4.1% 4.1% 4.1% 4.1% 4.0% 4.0%
3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9%
0.92 0.88 0.85 0.81 0.78 0.75 0.72
0.93 0.89 0.86 0.83 0.79 0.76 0.74

-14.7 5.9 24.8 -9.2 19.7 18.4 17.2

65.0 82.7 99.0 94.8 86.8 83.1 79.5

2 3 4 5 6 7 8
70.1 92.8 115.5 114.9 109.3 108.7 108.0
86.2 86.2 86.2 126.2 84.2 84.2 84.2
0.814 1.077 1.340 0.911 1.298 1.291 1.283
 2 3 4 5 6 7 8
-712.9 -630.2 -531.2 -436.3 -349.5 -266.4 -186.9
-134.8 -128.9 -104.1 -113.3 -93.6 -75.2 -58.0
7.3
5.2
 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
9 10 11 12 13 14 15 16 17 18
100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0

9 10 11 12 13 14 15 16 17 18
100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
201.2 201.2 201.2 201.2 201.2 201.2 201.2 201.2 201.2 201.2

9 10 11 12 13 14 15 16 17 18
40.0 40.0

12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5
52.5 52.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5

9 10 11 12 13 14 15 16 17 18
159.9 81.3
5.6 2.8
84.2 84.2
78.6 81.3
5.6 2.8
81.3 0.0

9 10 11 12 13 14 15 16 17 18

9 10 11 12 13 14 15 16 17 18

84.2 84.2
-84.2 -84.2
 9 10 11 12 13 14 15 16 17 18
86.4 86.4 86.4 86.4 86.4 86.4 86.4 86.4 86.4 86.4
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

9 10 11 12 13 14 15 16 17 18
325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0
201.2 201.2 201.2 201.2 201.2 201.2 201.2 201.2 201.2 201.2
123.8 123.8 123.8 123.8 123.8 123.8 123.8 123.8 123.8 123.8
52.5 52.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5
71.3 71.3 111.3 111.3 111.3 111.3 111.3 111.3 111.3 111.3
5.6 2.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
65.7 68.4 111.3 111.3 111.3 111.3 111.3 111.3 111.3 111.3
16.4 17.1 27.8 27.8 27.8 27.8 27.8 27.8 27.8 27.8

9 10 11 12 13 14 15 16 17 18
325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0
325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0

201.2 201.2 201.2 201.2 201.2 201.2 201.2 201.2 201.2 201.2

0.0 0 0.0 0 0.0 0 0.0 0 0.0 0

201.2 201.2 201.2 201.2 201.2 201.2 201.2 201.2 201.2 201.2
123.8 123.8 123.8 123.8 123.8 123.8 123.8 123.8 123.8 123.8
16.4 17.1 27.8 27.8 27.8 27.8 27.8 27.8 27.8 27.8
107.4 106.7 96.0 96.0 96.0 96.0 96.0 96.0 96.0 96.0

9 10 11 12 13 14 15 16 17 18
107.4 106.7 96.0 96.0 96.0 96.0 96.0 96.0 96.0 96.0
-84.2 -84.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
23.2 22.5 96.0 96.0 96.0 96.0 96.0 96.0 96.0 96.0

9 10 11 12 13 14 15 16 17 18
 9 10 11 12 13 14 15 16 17 18
107.4 106.7 96.0 96.0 96.0 96.0 96.0 96.0 96.0 96.0
960.2 891.1 830.0 766.5 700.5 631.9 560.7 486.6 409.7 329.7
81 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
878.9 891.1 830.0 766.5 700.5 631.9 560.7 486.6 409.7 329.7
0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
8.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
91.5% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9%
3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9%
0.69 0.67 0.64 0.62 0.60 0.57 0.55 0.53 0.51 0.49
0.71 0.68 0.66 0.63 0.61 0.58 0.56 0.54 0.52 0.50

16.1 15.0 61.7 59.4 57.2 55.0 53.0 51.0 49.1 47.2
76.0 72.7 62.9 60.6 58.3 56.1 54.0 51.9 50.0 48.1

9 10
107.4 106.7
84.2 84.2
1.276 1.267
 9 10 11 12 13 14 15 16 17 18
-110.9 -38.2 24.7 85.3 143.5 199.6 253.6 305.6 355.6 403.7
-41.8 -26.8 35.0 94.4 151.6 206.6 259.6 310.5 359.6 406.8
 2034 2035
19 20
100% 100%
325.0 325.0

19 20
100% 100%
201.2 201.2

19 20

12.5 12.5
12.5 12.5

19 20

19 20

19 20
 19 20
86.4 0.0
0.0 -86.4

19 20
325.0 325.0
201.2 201.2
123.8 123.8
12.5 12.5
111.3 111.3
0.0 0.0
111.3 111.3
27.8 27.8

19 20
325.0 399.0
325.0 325.0
74.0
201.2 114.9

0.0 -86.4
201.2 201.2
123.8 284.1
27.8 27.8
96.0 256.3

19 20
96.0 256.3
0.0 0.0
96.0 256.3

19 20
 19 20
96.0 256.3
246.7
0
0
246.7
0.0
0.0
0.0%
0.0%
100.0%
3.9%
3.9%
0.47 0.46
0.48 0.46

45.4 116.8
46.3 119.0
 19 20
450.0 569.0
452.2 569.0
ECONOMIC RESOURCES STATEMENT (EFFICIENCY PRICES)
Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Benefits 81.3 162.5 243.8 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 393.9
Sales/Revenues 81.3 162.5 243.8 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0 325.0
Liquidation value 68.9
Market costs 688.6 161.3 114.2 171.4 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 124.3
Fixed investment costs 688.6
Working capital investments 104.2 -104.2
Operating costs 57.1 114.2 171.4 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5 228.5
Nonmarket costs (external costs) 0.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0
Net benefits flow -688.6 -80.1 38.3 62.4 86.5 86.5 86.5 86.5 86.5 86.5 86.5 86.5 86.5 86.5 86.5 86.5 86.5 86.5 86.5 86.5 259.6

Social discount rates 5% 10% 15%

NPV 231.3 -135.91 -333.81
IRR 7.8%
 Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Total referent group net benefits
METHOD 1: AGGREGATED NET BENEFITS 51.4 -40.7 -31.9 -30.4 -29.0 -28.4 -22.8 -22.2 -21.5 -20.9 -20.2 -9.5 -9.5 -9.5 -9.5 -9.5 -9.5 -9.5 -9.5 -9.5 3.2
METHOD 2: DISAGGREGATED NET BENEFITS
Government 51.4 -42.6 -25.8 -26.3 -26.8 -26.2 -20.6 -20.0 -19.3 -18.7 -18.0 -7.3 -7.3 -7.3 -7.3 -7.3 -7.3 -7.3 -7.3 -7.3 5.4
- Tariffs 51.4 1.7 0.8 1.2 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 -4.9
- Indirect taxes 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1
- Income tax -16.0 -8.3 0.0 8.3 8.9 14.5 15.1 15.8 16.4 17.1 27.8 27.8 27.8 27.8 27.8 27.8 27.8 27.8 27.8 27.8
- Subsidies -28.4 -18.4 -27.6 -36.8 -36.8 -36.8 -36.8 -36.8 -36.8 -36.8 -36.8 -36.8 -36.8 -36.8 -36.8 -36.8 -36.8 -36.8 -36.8 -17.6
Land owner 0.8 1.5 2.3 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Labourers 1.2 2.4 3.6 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8
Local community 0.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0 -10.0
Total referent group net benefits 51.4 -40.7 -31.9 -30.4 -29.0 -28.4 -22.8 -22.2 -21.5 -20.9 -20.2 -9.5 -9.5 -9.5 -9.5 -9.5 -9.5 -9.5 -9.5 -9.5 3.2
Check for consistency 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Social discount rates 5% 10% 15%

Government -173.2 -124.1 -91.5
Directtax 176.3 92.6 49.5
Indirect taxes 1.8 1.2 0.8
Import duties 67.5 62.9 60.0
Subsidies -418.8 -280.7 -201.9
Land owner 33.2 21.7 15.2
Labourers 53.2 34.7 24.3
Local community -115.1 -76.0 -53.9
Referent group -201.9 -143.7 -105.9
Non-referent group 433.3 7.8 -227.9
Year 0 1 2 3 4 5
Net cash flow (TIPV) -740.0 -39.4 70.1 92.8 115.5 114.9
Debt finance flow 700.0 -44.2 -86.2 -86.2 -86.2 -126.2
Net cash flow (EPV) -40.0 -83.6 -16.0 6.6 29.3 -11.3

Net cash flow (TIPV)

400.0

200.0

0.0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

-200.0

-400.0

-600.0

-800.0

Net cash flow (EPV)

300.0

250.0

200.0

150.0

100.0

50.0

0.0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
-50.0

-100.0

-150.0
 DIS

Discount rate 5% 10% 15% At the current interest rates of the project, we conclude
NPV (TIPV) 433.26 7.79 -227.89 that at discount rates of 5% and 10%, the project is
NPV (EPV) 483.33 196.37 59.62 deemed feasible and brings social benefits.

IRR
IRR(EPV) 19.11% Based on the overall investment perspective, the project is deemed
IRR(TIPV) 10.13% viable and able to yield social benefits as the Internal Rate of Return
(IRR) (TIPV) surpasses the Weighted Average Cost of Capital (WACC)
of 3.9%.
From the ownership perspective, the project is considered feasible and
advantageous for owners, given that the Internal Rate of Return (IRR)
(EPV) at 19.11% exceeds the required rate of return (re).

PAYPACK PERIOD
TIPV 10 years 7.3 months
EPV 10 years 5.2 months

Year 0 1 2 3 4 5
Cumulated PV - NCF (TIPV) -740.0 -777.9 -712.9 -630.2 -531.2 -436.3
Cumulated PV - NCF (EPV) -40.0 -120.1 -134.8 -128.9 -104.1 -113.3

Cumulated PV - NCF (TIPV) Cum

800.0 700.0

600.0 600.0

400.0 500.0

200.0 400.0

0.0 300.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
-200.0 200.0

-400.0 100.0

-600.0 0.0
1 2 3 4 5 6 7
-800.0 -100.0

-1000.0 -200.0
 0.0 300.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
-200.0 200.0

-400.0 100.0

-600.0 0.0
1 2 3 4 5 6 7
-800.0 -100.0

-1000.0 -200.0
Through the integration of the discounted payback period and the cumulative charts fo
of Net Cash Flow (TIPV) and Net Cash Flow (EPV), it is apparent that the duration with a
constitutes roughly half of the project's operational lifespan. Consequently, the repaym
loans is anticipated to take approximately 10 to 11 years.

Year 1 2 3 4 5 6
DSCR -0.47 0.81 1.08 1.34 0.91 1.30
Average DSCR 1.009

In the initial year, the Debt Service Coverage Ratio (DSCR) is negative (-0.47), causing
apprehension regarding the capacity to fulfill debt obligations. Nevertheless, from the DEBT
second to the fourth year, the DSCR progressively rises from 0.81 to 1.34, indicating a 1.5
notable enhancement. In the fifth year, a decrease to 0.91 raises financial concerns, but
subsequent years maintain stability with DSCR consistently above 1, suggesting the ability
to sustain profits adequate for long-term debt servicing. 1
Conversely, when considering the project's average DSCR (1.009), which is below the
recommended threshold of 1.3, it stems from the initial phase where the ratio falls below 0.
Enhancing DSCR in the early stages, as previously mentioned, can boost this average ratio, 0.5
ensuring the project's efficacy.
0
1 2 3

-0.5

-1
 NET CASH FLOW
6 7 8 9 10 11 12 13 14 15
109.3 108.7 108.0 107.4 106.7 96.0 96.0 96.0 96.0 96.0
-84.2 -84.2 -84.2 -84.2 -84.2 0.0 0.0 0.0 0.0 0.0
25.1 24.5 23.9 23.2 22.5 96.0 96.0 96.0 96.0 96.0

Total Investment Point of View

The net cash flow after tax (TIPV) for the project exhibits a generally upward
trajectory, albeit with some fluctuations. In the initial two years (Year 0 and Year 1, or
2015 and 2016), the net cash flow is negative, indicating a period of incurred costs
exceeding revenues. However, starting from Year 2 (2017), the project experiences a
positive shift, with revenues surpassing costs consistently. During this period, the net
17 18 19 20 cash flow demonstrates relatively stable growth, reaching its pinnacle in Year 20
(2035).

Equity Point of View

In essence, a close examination of the cash flow suggests that the project is
anticipated to undergo losses in its early stages but is projected to turn profitable
starting from Year 6.
During the initial phase of the project, the owner's cash outflows surpass cash
inflows, leading to a negative EPV net cash flow. Specifically, from Year 1 to Year 5,
there is a consistent negativity in cash flow, particularly evident in Year 2 and Year 5
with values of -83.6 and -11.3, respectively. This indicates financial losses during the
project's early years.
From Year 6 to Year 20, the cash flow becomes positive and shows steady growth,
particularly from Year 11 onward with a constant value of 96.0. This positive trend
could be attributed to revenues, profits, or increased cash inflows generated by the
16 17 18 19 20 project. Noteworthy is the highest recorded net cash flow after tax in Year 20.
 DISCOUNT RATE & INTERNAL RATE OF RETURN

rates of the project, we conclude

of 5% and 10%, the project is
brings social benefits.

e, the project is deemed

e Internal Rate of Return
ge Cost of Capital (WACC)

t is considered feasible and

ernal Rate of Return (IRR)
of return (re).

PAYPACK PERIOD

6 7 8 9 10 11 12 13 14 15
-349.5 -266.4 -186.9 -110.9 -38.2 24.7 85.3 143.5 199.6 253.6
-93.6 -75.2 -58.0 -41.8 -26.8 35.0 94.4 151.6 206.6 259.6

Cumulated PV - NCF (EPV)

700.0

600.0

500.0

400.0

300.0

200.0

100.0

0.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
-100.0

-200.0
 300.0

200.0

100.0

0.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
-100.0

-200.0
iod and the cumulative charts for Present Value (PV)
apparent that the duration with a negative PV value
espan. Consequently, the repayment of all project
rs.

DEBT SERVICE COVERAGE RATIOS (DSCR)

7 8 9 10
1.29 1.28 1.28 1.27
009

DEBT SERVICE COVERAGE RATIOS

1.5

0.5

0
1 2 3 4 5 6 7 8 9 10

-0.5

-1
16 17 18 19 20
96.0 96.0 96.0 96.0 256.3
0.0 0.0 0.0 0.0 0.0
96.0 96.0 96.0 96.0 256.3
 16 17 18 19 20
305.6 355.6 403.7 450.0 569.0
310.5 359.6 406.8 452.2 569.0