feasibility assessment template

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


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


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.


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

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%

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