superproject - super THE SUPER PROJECT Alternative Evaluations of Super Project(thousands of dollars Appendix A p 472 1 Incremental Basis Investment

superproject - super THE SUPER PROJECT Alternative...

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super.xls Page 1 THE SUPER PROJECT Alternative Evaluations of Super Project (thousands of dollars), Appendix A, p. 472 1. Incremental 2. Facilities- 3. Fully Basis Used Basis Allocated Basis Investment Working capital 267 267 267 Fixed capital Gross 200 653 672 Net 113 358 367 Total net investment 380 625 634 Profit before taxes 239 211 157 ROFE 63% 34% 25% Jell-O Project Building 133 Agglomerator 320 453 The above table gives ten-year averages. The calculations for the "Incremental Basis" evaluation are shown in Exhibit 6 (reproduced below). The "Facilities Used Basis" involves adding the building and agglomerator allocation ($453,000) and the following allocation for overhead costs "directly related to these existing facilities" (see p. 470). 1st per. 2nd per. 3rd per. 4th per. 5th per. 6th per. 7th per. 8th per. 9th per. 10th per. Funds Employed Fiscal 68 Fiscal 69 Fiscal 70 Fiscal 71 Fiscal 72 Fiscal 73 Fiscal 74 Fiscal 75 Fiscal 76 Fiscal 77 10-yr avg Facilities overhead 28 28 28 28 28 28 28 28 28 28 28 The "Fully Allocated Basis" involves adding an allocation of $19,000 for fixed capital at the start of the project as Super's "share of the distribution system assets" (see p. 471).
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