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Biomass Energy Series – Wood Pellet Plant Model

October 8th, 2013 Posted in combined heat & power

Biomass Energy Series – Wood Pellet Plant Model

A new project finance model for a wood pellet plant is available now (see below for snipet of the model).

You can order via email

mars_ocampo@yahoo.com

or

energydataexpert@gmail.com

Once you have confirmed your order and explain why you need the model and for what purpose you will be using it, I will confirm the price, and once agreed mutually, you may remit the payment to my bank account which details I will email to the buyer.

The wood pelletizing plant takes in woodchip as raw material and converts them into pellets which goes then to a biomass CHP (combined heat and power) power plant that provides both electricity to the entire plant and surplus to the grid, and also provides heat/process steam to convert the woodchips into wooden pellets that will used in the biomass cogeneration power (CHP) power plant to produce steam to run a back-pressure and condensing turbine.

Here are some few columns of the model. Please order now to avail of my generous discounts.

Thanks.

years 30 0 0 1 1 1 1 1
Parameters Units Value Total 0 0 1 2 3 4 5
Wood   Pelletizing Plant
Operating   Period Calculations
Calendar Year 2008 2009 2010 2011 2012 2013 2014
Net Electrical Output Year 0 0 1 2 3 4 5
Annual Pellet production tonnes/yr 30,000 0 0 30,000 30,000 30,000 30,000 30,000
Net electrical power output kW 0 0 0 0 0 0 0 0
  Gross plant heat rate   (power plant) Btu/kWh 12,500 0 0 12,500 12,500 12,500 12,500 12,500
Annual Domestic pellet sales tonnes/yr 5,000 0 0 5,000 5,000 5,000 5,000 5,000
  Rate (domestic pellet   price) $/tonne 180.0000 0.0000 0.0000 180.0000 180.0000 180.0000 180.0000 180.0000
Annual Export pellet sales tonnes/yr 25,000 0 0 25,000 25,000 25,000 25,000 25,000
  Rate (export pellet   price) $/tonne 180.0000 0.0000 0.0000 180.0000 180.0000 180.0000 180.0000 180.0000
Annual Woodchip sales tonnes/yr 0 0 0 0 0 0 0 0
  Rate (woodchip price) $/tonne 50.0000 0.0000 0.0000 50.0000 50.0000 50.0000 50.0000 50.0000
Annual power generation MWh/yr 0 0 0 0 0 0 0
  Electricity tariff   (selling price) $/kWh 0.2500 0.0000 0.0000 0.2500 0.2500 0.2500 0.2500 0.2500
NSP intensity factor tCO2e/kWh 0.8000 0.0000 0.0000 0.8000 0.8000 0.8000 0.8000 0.8000
Annual carbon credits tCO2e/yr 0 0 0 0 0 0 0
  Rate (carbon credit   price) $/tonne 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Initial availability of plant on an annual basis (50% up to   year 1) % 100.00% 1 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Operating hours h/yr 8760 0 0 8760 8760 8760 8760 8760
Exchange Rate and Escalation Year 0 0 1 2 3 4 5
Projected Exchange Rate PhP/US$ 44.000           44.000           44.000           44.000           44.000           44.000           44.000           44.000
Escalation Factors (CPI)
  Annual Escalation   (electricity tariff) % p.a. 2.00% 0.000 0.000 1.000 1.020 1.040 1.061 1.082
  Annual Escalation   (domestic pellet price) % p.a. 2.00% 0.000 0.000 1.000 1.020 1.040 1.061 1.082
  Annual Escalation   (export pellet price) % p.a. 2.00% 0.000 0.000 1.000 1.020 1.040 1.061 1.082
  Annual Escalation   (woodchip price) % p.a. 2.00% 0.000 0.000 1.000 1.020 1.040 1.061 1.082
  Annual Escalation   (wood cost) % p.a. 2.00% 0.000 0.000 1.000 1.020 1.040 1.061 1.082
  Annual Escalation   (O&M costs) % p.a. 2.00% 0.000 0.000 1.000 1.020 1.040 1.061 1.082
Revenue Year 0 0 1 2 3 4 5
Annual power generation MWh/yr                    –                    –                    –                    –                    –                    –                    –
  Electricity tariff   (selling price) PhP/kWh                    –                    –             11.00             11.22             11.44             11.67             11.91
  Total electrical   power revenue PhP 000                    –                    –                    –                    –                    –                    –                    –
Annual Domestic pellet sales tonnes/yr                    –                    –             5,000             5,000             5,000             5,000             5,000
  Rate (domestic pellet   price) PhP/tonne                    –                    –        7,920.00        8,078.40        8,239.97        8,404.77        8,572.86
  Total domestic pellet   sales PhP 000        900,000                    –                    –           39,600           40,392           41,200           42,024           42,864
Annual Export pellet sales tonnes/yr                    –                    –           25,000           25,000           25,000           25,000           25,000
  Rate (export pellet   price) PhP/tonne                    –                    –        7,920.00        8,078.40        8,239.97        8,404.77        8,572.86
  Total export pellet   sales PhP 000     4,500,000                    –                    –         198,000         201,960         205,999         210,119         214,322
Annual Woodchip sales tonnes/yr                    –                    –                    –                    –                    –                    –                    –
  Rate (woodchip price) PhP/tonne                    –                    –        2,200.00        2,244.00        2,288.88        2,334.66        2,381.35
  Total woodchip sales PhP 000                  –                    –                    –                    –                    –                    –                    –                    –
Annual carbon credits tCO2e/yr                    –                    –                    –                    –                    –                    –                    –
  Rate (carbon credit price) PhP/tonne                    –                    –                    –                    –                    –                    –                    –
  Total carbon credicts PhP 000                  –                    –                    –                    –                    –                    –                    –                    –
DSRF Income (not implemented) PhP 000
Revenues (power, pellet, woodchip) PhP 000     5,400,000                    –                    –         237,600         242,352         247,199         252,143         257,186
$                    –                    –      5,400,000      5,508,000      5,618,160      5,730,523      5,845,134
Operating Expenses Overhaul cycle (5 years) 0 0 0 0 0 0 1
Gross plant heat rate (power plant) Btu/kWh                    –                    –           12,500           12,500           12,500           12,500           12,500
Normal degradation of heat rate % p.a. 0.50% 0.000 0.000 1.000 1.005 1.010 1.015 0.997
Overhaul recovery of heat rate (recovery, cycle years) 2.25% 90.00% 5
Actual gross plant heat rate with overhaul Btu/kWh                    –                    –           12,500           12,563           12,625           12,688           12,465
Annual power generation MWh/yr                    –                    –                    –                    –                    –                    –                    –
Annual heat requirement MMBtu/yr                    –                    –                    –                    –                    –                    –                    –
Woodchip requirement, million lbs MMlb/yr 6,000 Btu/lb                    –                    –                    –                    –                    –                    –                    –
Woodchip requirement, tonnes (1,000 kgs) tonnes/yr 2.20462 lb/kg                    –                    –                    –                    –                    –                    –                    –
  Rate (woodchip price) PhP/tonne 40.00 $/tonne                    –                    –        1,760.00        1,795.20        1,831.10        1,867.73        1,905.08
  Total woodchip cost   (power) PhP 000                    –                    –                    –                    –                    –                    –                    –
Annual wood requirements to make wood chips tonnes/yr 0.48% of pellet                    –                    –               143               143               143               143               143
  Rate (fuel wood   price) PhP/tonne 35.00 $/tonne                    –                    –        1,540.00        1,570.80        1,602.22        1,634.26        1,666.95
  Total fuel wood cost PhP 000                    –                    –               220               224               229               233               238
Annual woodchip fuel requirement tonnes/yr 240.00% of pellet                    –                    –           72,000           72,000           72,000           72,000           72,000
  Rate (woodchip fuel   price) PhP/tonne 40.00 $/tonne                    –                    –        1,760.00        1,795.20        1,831.10        1,867.73        1,905.08
  Total woodchip cost   (fuel) PhP 000                    –                    –         126,720         129,254         131,839         134,476         137,166
Annual electricity requirement MWh/yr 78.800  kWh/tonne                    –                    –      2,364,000      2,364,000      2,364,000      2,364,000      2,364,000
  Electricity tariff   (selling price) PhP/kWh                    –                    –             11.00             11.22             11.44             11.67             11.91
  Total electricity   requirement PhP 000                    –                    –           26,004           26,524           27,055           27,596           28,148
Water PhP 000 0.000 $ per month                    –                    –                    –                    –                    –                    –                    –
Communications PhP 000 166.667 $ per month                    –                    –                 88                 90                 92                 93                 95
Manpower and management (12 months) PhP 000
  Manager (1) PhP 000 4,166.667 $ per month                    –                    –             2,200             2,244             2,289             2,335             2,381
  Operators (21) PhP 000 52,500.000 $ per month                    –                    –           27,720           28,274           28,840           29,417           30,005
  Consultants (2) PhP 000 0.000 $ per month                    –                    –                    –                    –                    –                    –                    –
  Security (2) PhP 000 0.000 $ per month                    –                    –                    –                    –                    –                    –                    –
O&M contract PhP 000 4,166.667 $ per month                    –                    –             2,200             2,244             2,289             2,335             2,381
General supplies PhP 000 8,333.333 $ per month                    –                    –             4,400             4,488             4,578             4,669             4,763
Insurance PhP 000 1,250.000 $ per month                    –                    –               660               673               687               700               714
Property taxes, permits & licenses PhP 000 833.333 $ per month                    –                    –               440               449               458               467               476
Miscellaneous PhP 000 2,500.000 $ per month                    –                    –             1,320             1,346             1,373             1,401             1,429
DSRF Expense (not implemented) PhP 000
Total O&M Costs PhP 000                    –                    –         191,972         195,811         199,728         203,722         207,797
Total O&M Costs $                    –                    –      4,363,000      4,450,260      4,539,265      4,630,051      4,722,652
Operating Gross Margin (Revenues – Total O&M Costs) $                    –                    –      1,037,000      1,057,740      1,078,895      1,100,473      1,122,482
Interest on debt $                    –                    –         222,359         220,224         217,925         215,448         212,780
Depreciation $                    –                    –         200,000         200,000         200,000         200,000         200,000
Amortization of capital additions $                    –                    –                    –                    –                    –                    –                    –
Total Expenses $                    –                    –      4,785,359      4,870,484      4,957,190      5,045,498      5,135,432
Net income before corporate tax $                    –                    –         614,641         637,516         660,970         685,025         709,702
Corporate tax $ 40% 0                    –                    –         245,857         255,006         264,388         274,010         283,881
Net income after corporate tax $                    –                    –         368,785         382,510         396,582         411,015         425,821
Retained earnings – beginning $         368,785         368,785         382,510         396,582         411,015
Dividends $         368,785         368,785         382,510         396,582         411,015
Retained earnings – ending $         368,785         382,510         396,582         411,015         425,821
Net Cashflow and Returns Year 0 0 1 2 3 4 5
Net profit after tax $         368,785         382,510         396,582         411,015         425,821
Addback:
  Depreciation &   Amortization $         200,000         200,000         200,000         200,000         200,000
  Working Capital $
  Salvage Value $
Add:
  DSRF Income $
Less:
  Principal Repayment $           27,674           29,809           32,108           34,585           37,253
NET CASH FLOW $         541,110         552,701         564,474         576,430         588,568
Return on Equity (ROE) – based on net cash flow
Equity Investment by Shareholders (Equity Portion of Project   Cost) $ 10.00%     (1,275,000)
Annual Dividends Payable $         541,110         552,701         564,474         576,430         588,568
Net Cash Flow to Shareholders $        4,370,043 NPV     (1,275,000)         541,110         552,701         564,474         576,430         588,568
Equity Payback Period years 2.32 PAY     (1,275,000)        (733,890)        (181,189)         383,285         959,714      1,548,283
Equity Internal Rate of Return – Nominal % 44.5% IRR 2.32
32.5% using dividends
Return on Investment (ROI) – based on net cash flow
Uses of Funds During Construction (Project Cost) $ 10.00%     (4,250,000)
Annual Dividends Payable $         541,110         552,701         564,474         576,430         588,568
Net Project Cash Flow $        1,337,624 NPV     (4,250,000)         541,110         552,701         564,474         576,430         588,568
Project Payback Period years 7.34 PAY     (4,250,000)     (3,708,890)     (3,156,189)     (2,591,715)     (2,015,286)     (1,426,717)
Project Internal Rate of Return – Nominal % 13.9% IRR
11.4% using dividends
Balance Sheet Accounts Year 0 0 1 2 3 4 5
Receivables
  Revenues $      5,400,000      5,508,000      5,618,160      5,730,523      5,845,134
  Receivables $ 30 days         443,836         452,712         461,767         471,002         480,422
  (Increase) Decrease   in Receivables $        (443,836)            (8,877)            (9,054)            (9,235)            (9,420)
Stocks & Inventories
  Fuel Wood $
  Woodchip $
  Total Stocks &   Inventories $                    –                    –                    –                    –                    –
  Stocks &   Inventories $ 30 days                    –                    –                    –                    –                    –
  Increase (Decrease)   in Stocks & Inventories $                    –                    –                    –                    –                    –
Payables
  Total expenses net of   stocks & inventories $      4,363,000      4,450,260      4,539,265      4,630,051      4,722,652
  Payables $ 30 days         358,603         365,775         373,090         380,552         388,163
  Increase (Decrease)   in Accounts Payable $         358,603            (7,172)            (7,315)            (7,462)            (7,611)
Capital cost
  Non-depreciable $           250,000         250,000
  Depreciable $        4,000,000      4,000,000
  Total capital cost $        4,250,000
Financing of capital cost
  Debt $        2,975,000 70% 7.50% 50%      2,975,000
  Equity $        1,275,000 30% 10.00% 50%      1,275,000
  Total capital cost $        4,250,000 100% 8.25% 100%
Working Capital Needs (WCN)
  Receivables (+) $ 30 days         443,836         452,712         461,767         471,002         480,422
  Stocks &   Inventories (+) $ 30 days                    –                    –                    –                    –                    –
  Suppliers (Payables)   (-) $ 30 days         358,603            (7,172)            (7,315)            (7,462)            (7,611)
  WCN $           85,233         459,884         469,082         478,464         488,033
Loan Repayment Schedule (Principal + Interest) Period (month) 1 2 3 4 5 6 7
Loan #1 30 years
4 quarters
120 periods
7.50% p.a.
1.88% per quarter
2.10% CRF
70% $2,975,000 AMT
$62,508.27 PMT
Beginning Balance      2,975,000        2,968,273        2,961,420        2,954,438        2,947,326        2,940,080        2,932,698
Interest           55,781           55,655           55,527           55,396           55,262           55,126           54,988
Principal             6,727             6,853             6,982             7,113             7,246             7,382             7,520
Ending Balance      2,968,273        2,961,420        2,954,438        2,947,326        2,940,080        2,932,698        2,925,178
Loan #2 1 years
4 quarters
4 periods
7.50% p.a.
1.88% per quarter
26.18% CRF
$100,000 AMT
$26,182.76 PMT
Beginning Balance
Interest
Principal
Ending Balance
Year 1 1 1 1 2 2 2
Beginning Balance        2,975,000        2,968,273        2,961,420        2,954,438        2,947,326        2,940,080        2,932,698
Interest           55,781           55,655           55,527           55,396           55,262           55,126           54,988
Principal             6,727             6,853             6,982             7,113             7,246             7,382             7,520
Ending Balance        2,968,273        2,961,420        2,954,438        2,947,326        2,940,080        2,932,698        2,925,178
Interest         222,359
Principal           27,674
Loan Repayment Schedule
Beginning  Balance $      2,975,000      2,947,326      2,917,517      2,885,408      2,850,823
  Interest $         222,359         220,224         217,925         215,448         212,780
  Principal $           27,674           29,809           32,108           34,585           37,253
Ending  Balance $      2,975,000      2,947,326      2,917,517      2,885,408      2,850,823      2,813,570
Annual debt service (principal + interest) $         250,033         250,033         250,033         250,033         250,033
Debt Service Reserve Fund (DSRF) 6 months         125,017         125,017         125,017         125,017         125,017
DSRF Income 4.00% DSRF Income             5,001             5,001             5,001             5,001             5,001
Withholding Tax on Forex Fund 7.50% WhTax
DSRF Expense 0.30% DSRF Expense               375               375               375               375               375
Depreciation Schedule
Beginning Balance $        4,000,000      4,000,000      3,800,000      3,600,000      3,400,000      3,200,000
  Depreciation $ 20 0         200,000         200,000         200,000         200,000         200,000
Ending Balance $ 0%        200,000      4,000,000      3,800,000      3,600,000      3,400,000      3,200,000      3,000,000
Capital Additions Depreciation Schedule
Beginning Balance $           100,000
  Depreciation $ 14 7
Ending Balance $ 0%           7,143
Balance Sheet (before dividends payment) Year 0 0 1 2 3 4 5
ASSETS
Cash         701,734         893,095      1,082,702      1,270,398      1,456,013
Accounts Receivable (customers)         443,836         452,712         461,767         471,002         480,422
Stocks (inventories)                    –                    –                    –                    –                    –
Land
Fixed Assets
  Non-depreciable         250,000         250,000         250,000         250,000         250,000         250,000
  Depreciable      4,000,000      4,000,000      4,000,000      4,000,000      4,000,000      4,000,000
  Less: Accumulated   Depreciation         200,000         400,000         600,000         800,000      1,000,000
  Net Fixed Assets      4,000,000      3,800,000      3,600,000      3,400,000      3,200,000      3,000,000
TOTAL ASSETS      4,250,000      5,195,570      5,195,807      5,194,469      5,191,400      5,186,435
LIABILITIES
Accounts Payable (suppliers)         358,603         365,775         373,090         380,552         388,163
Corporate Taxes         245,857         255,006         264,388         274,010         283,881
  Total Short-term   Liabilities         604,459         620,781         637,478         654,562         672,044
Shareholder’s Advances
Long-term Debt (ending balance)      2,975,000      2,947,326      2,917,517      2,885,408      2,850,823      2,813,570
TOTAL LIABILITIES      2,975,000      3,551,785      3,538,298      3,522,886      3,505,385      3,485,614
EQUITY
Subsidy
Capital      1,275,000      1,275,000      1,275,000      1,275,000      1,275,000      1,275,000
Retained Earnings         368,785         382,510         396,582         411,015         425,821
Total Equity      1,275,000      1,643,785      1,657,510      1,671,582      1,686,015      1,700,821
TOTAL LIABILITIES &   EQUITY      4,250,000      5,195,570      5,195,807      5,194,469      5,191,400      5,186,435
Variance                   –                   –                   –                   –                   –                   –
Returns and Financial Ratios Year 0 0 1 2 3 4 5
  Earnings Before Tax and Interest         837,000         857,740         878,895         900,473         922,482
  Interest on Long-Term Debt         222,359         220,224         217,925         215,448         212,780
  Earnings Before Tax (Net Profit Before Tax)         614,641         637,516         660,970         685,025         709,702
  Corporate tax (Income Tax)         245,857         255,006         264,388         274,010         283,881
  Earnings After Tax (Net Profit After Tax)         368,785         382,510         396,582         411,015         425,821
  Total Sales      5,400,000      5,508,000      5,618,160      5,730,523      5,845,134
    Total Assets      5,195,570      5,195,807      5,194,469      5,191,400      5,186,435
  Total Investment (Net Debt + Equity)      4,222,326      4,192,517      4,160,408      4,125,823      4,088,570
  Total Owner’s Equity      1,275,000      1,275,000      1,275,000      1,275,000      1,275,000
  Net Profit to Sales = Earnings After Tax /   Total Sales (preferably >   interest rate) 7.50% 6.83% 6.94% 7.06% 7.17% 7.29%
  Gross Profit to Assets = Earnings Before   Tax / Total Assets (preferably >   interest rate) 7.50% 11.83% 12.27% 12.72% 13.20% 13.68%
  Net Profit to Assets = Earnings After Tax /   Total Assets (preferably >   interest rate) 7.50% 7.10% 7.36% 7.63% 7.92% 8.21%
  Return on Investment (ROI) = Net Profit   Before Tax / Total Investment (preferably >   interest rate) 7.50% 14.56% 15.21% 15.89% 16.60% 17.36%
  Return on Investment (ROI) = Net Profit   After Tax / Total Investment (preferably >   interest rate) 7.50% 8.73% 9.12% 9.53% 9.96% 10.41%
  Return on Owners’ Equity (ROE) = Net Profit   After Tax / Total Owners’ Equity (preferably >   interest rate) 7.50% 28.92% 30.00% 31.10% 32.24% 33.40%
  CURRENT RATIO
Current Assets (cash, receivables)      1,145,570      1,345,807      1,544,469      1,741,400      1,936,435
Current Liabilities (payables)         358,603         365,775         373,090         380,552         388,163
Current Ratio = Current Assets / Current Liabilities (preferably > 2.00) 2.00 3.19 3.68 4.14 4.58 4.99
  TOTAL LIABILITIES TO TOTAL EQUITY RATIO
Total Liabilities      3,551,785      3,538,298      3,522,886      3,505,385      3,485,614
Total Owners’ Equity      1,643,785      1,657,510      1,671,582      1,686,015      1,700,821
Total Liabilities to Total Equity Ratio = Total Liabilities /   Total Owner’s Equity (preferably < 4.00 ( = 80 / 20) ) 4.00 2.16 2.13 2.11 2.08 2.05
  RETURN ON ASSETS:
Profit Before Interest and Income tax (Income Before Tax)         837,000         857,740         878,895         900,473         922,482
Total Assets      5,195,570      5,195,807      5,194,469      5,191,400      5,186,435
Return on Assts = Profit Before Tax / Total Assets (preferably > interest rate) 7.50% 16.11% 16.51% 16.92% 17.35% 17.79%
Statement of Cash Flows Year 0 0 1 2 3 4 5
Cash from Operations
Net Income After Tax         368,785         382,510         396,582         411,015         425,821
Depreciation and Amortization         200,000         200,000         200,000         200,000         200,000
Total cash from operations         568,785         582,510         596,582         611,015         625,821
Cash from Financing
Bank Loan
Accounts Payable (suppliers)         358,603             7,172             7,315             7,462             7,611
Corporate Tax Payable         245,857             9,150             9,382             9,622             9,871
Stockholder’s Advances
Debt      2,975,000
Capital Addition Debt
Subsidy
Capital      1,275,000
Total cash from financing      4,854,459           16,322           16,697           17,084           17,482
Cash Used
Accounts Receivable (customers)         443,836             8,877             9,054             9,235             9,420
Stocks (inventories)                    –                    –                    –                    –                    –
Land (non-depreciable)         250,000
Building & Equipment      4,000,000                    –                    –                    –                    –
Debt Repayment           27,674           29,809           32,108           34,585           37,253
Dividends         368,785         382,510         396,582         411,015
Total Cash Used      4,721,510         407,471         423,672         440,403         457,688
Net Cash Provided (Used)         701,734         191,361         189,607         187,696         185,615
Cash – Begininng                    –         701,734         893,095      1,082,702      1,270,398
Cash – Ending 0         701,734         893,095      1,082,702      1,270,398      1,456,013
Variance                    –                    –                    –                    –                    –
Cashflow for Debt Service and Dividends Payable Year 0 0 1 2 3 4 5
Operating gross margin      1,037,000      1,057,740      1,078,895      1,100,473      1,122,482
 – Income tax        (245,857)        (255,006)        (264,388)        (274,010)        (283,881)
 – Increase in working   capital needs (WCN)           85,233         374,652             9,198             9,382             9,569
 + DSRF Income
Cash flow available for debt service (CFD)      1,197,624         938,095      1,334,085      1,365,101      1,396,794
Annual debt service (DS)         250,033         250,033         250,033         250,033         250,033
CF available for dividends (CFDiv = CFD-DS)         947,591         688,062      1,084,052      1,115,068      1,146,761
Accumulated CFDiv 0         947,591      1,635,652      2,719,704      3,834,772      4,981,533
Current year profit after tax         368,785         382,510         396,582         411,015         425,821
Accumulated profit: limit for dividend payable 0         368,785         751,294      1,147,876      1,558,891      1,984,712
Accumulated dividend payable         368,785         751,294      1,147,876      1,558,891      1,984,712
        368,785         751,294      1,147,876      1,558,891      1,984,712
Annual Dividends Payable         368,785         382,510         396,582         411,015         425,821
Equity Internal Rate of Return (based on dividends) Year 0 0 1 2 3 4 5
Equity Investment by Shareholders (Equity Portion of Project   Cost) $ 10.00%     (1,275,000)
Annual Dividends Payable $         368,785         382,510         396,582         411,015         425,821
Net Cash Flow to Shareholders $        3,271,630 NPV     (1,275,000)         368,785         382,510         396,582         411,015         425,821
Equity Payback Period years 3.31 PAY     (1,275,000)        (906,215)        (523,706)        (127,124)         283,891         709,712
Equity Internal Rate of Return – Nominal % 32.5% IRR 3.31
Project Internal Rate of Return (based on dividends) Year 0 0 1 2 3 4 5
Uses of Funds During Construction (Project Cost) $ 10.00%     (4,250,000)
Annual Dividends Payable $         368,785         382,510         396,582         411,015         425,821
Net Project Cash Flow $           567,084 NPV     (4,250,000)         368,785         382,510         396,582         411,015         425,821
Project Payback Period years 9.80 PAY     (4,250,000)     (3,881,215)     (3,498,706)     (3,102,124)     (2,691,109)     (2,265,288)
Project Internal Rate of Return – Nominal % 11.4% IRR

 

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