Kidman Project Apraisal.xlsx - Revenue Cost of Processing Plant Refinery Cost Machine Cost Salvage Value Opportunity cost of the Rental cost Increment

# Kidman Project Apraisal.xlsx - Revenue Cost of Processing...

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Statement Showing Calcualtion of the NPV Year 1 Year 2 Year 3 Revenue \$16,000,000 \$16,400,000.000 \$16,810,000.000 Cost of Processing Plant \$5,000,000 Refinery Cost 8333333.333333 8333333.3333333 8333333.3333333 Machine Cost 5000000 5000000 5000000 Salvage Value \$ (3,000,000.00) \$ (3,000,000.00) \$ (3,000,000.00) Opportunity cost of the Rental cost \$100,000 \$100,000 \$100,000 Increment of Salary (180000-1200000) \$60,000 \$60,000 \$60,000 Labour Changes \$3,000,000 \$3,000,000 \$3,000,000 Net Revenue (\$2,493,333.33) \$2,906,666.67 \$3,316,666.67 Less Tax @28% \$0 (\$813,866.67) (\$928,666.67) Net Income (\$2,493,333.33) \$2,092,800.00 \$2,388,000.00 PVIF ( 9.21% 0.915667063456 0.8384461710976 0.8384461710976 Present Value (\$2,283,063.21) \$1,754,700.15 \$2,002,209.46 NPV= (\$1,754,700.15+2,002,209.46-2,283,063.21) \$1,473,846.39

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Option 1 Project Analysis of Kidman Contruction and Installation cost Installation of New Refinery \$12,000,000 Processsing Plant \$4,500,000 Other Machine and Equipment \$6,000,000 \$22,500,000 Less Salvage Value \$6,000,000 Useful Value \$16,500,000 Depreciation Per Year \$5,500,000 Tax Saving on dep @25% \$1,375,000.00 Particular Year 0 Year 1 Year 2 Year 3 0 1 2 3 Revenue Revenue From lithuim Mined \$14,000,000.00 \$14,546,000.00 \$15,113,294.00 Tax Saving on Depreciation \$1,375,000.00 \$1,375,000.00 \$1,375,000.00 Total \$15,375,000.00 \$15,921,000.00 \$16,488,294.00 Cost Initial Investment \$22,500,000 Opportunity Rent \$95,000 \$95,000 \$95,000 Additional Salary \$80,000.00 \$80,000.00 \$80,000.00 Other Labor Requirment \$4,200,000.00 \$4,200,000.00 \$4,200,000.00 Working Capital Required 3,000,000 \$0.00 \$0.00 \$3,000,000.00 \$4,375,000 \$4,375,000 \$7,375,000 Total (\$25,500,000) \$11,000,000 \$11,546,000 \$9,113,294 PV Factor @8.97% 1 0.917680397613 #NAME? #NAME? Present Value (\$25,500,000) \$10,094,484.37 #NAME? #NAME? Sum of present Value \$1,360,673
Year 0 1 (\$25,500,000.00) \$11,000,000.00 PV Factor 7.02328% 1 #NAME? Present Values (\$25,500,000.00) #NAME? Sum of Present Values \$2,292,783.37 0 1 (\$5,000,000.00) \$4,200,000.00

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Unformatted text preview: PV Factor 7.02328% 1 #NAME? Present Values (\$5,000,000.00) #NAME? Sum of Present Values \$7,402,317.69 2 3 \$11,546,000.00 \$9,113,294.00 #NAME? 0.815765302636 \$10,080,336.72 \$7,434,309.04 2 3 \$4,746,000.00 \$5,313,294.00 #NAME? #NAME? #NAME? #NAME? Option 2 Outsourcing The Supply of Ore Quoted Cost \$20,000,000 Advance at Y0 @25% \$5,000,000.00 Yearly Installment \$5,000,000.00 Particular Year 0 Year 1 Year 2 1 2 Revenue Revenue from oursourced lithuim \$14,000,000.00 \$14,546,000.00 Cost Advance at the begining \$5,000,000.00 Yearly Installmets \$5,000,000.00 \$5,000,000.00 Processing Cost \$4,800,000.00 \$4,800,000.00 Total \$5,000,000.00 \$9,800,000.00 \$9,800,000.00 (\$5,000,000.00) \$4,200,000.00 \$4,746,000.00 PV Factor 8.9704% 1 #NAME? #NAME? Present Values (\$5,000,000.00) #NAME? \$3,996,783.68 Sum of Present Values \$6,957,223.52 Year 3 3 \$15,113,294.00 \$5,000,000.00 \$4,800,000.00 \$9,800,000.00 \$5,313,294.00 #NAME? #NAME? Item Market Value Weight Cost Before Tax Cost After Tax Ordinary Shares 563,500,000.00 0.926165 8.97% 8.9704% Preffered Share 3,600,000.00 0.005917 4.75% 4.7500% Bank Over Draft 4,000,000.00 0.006574 4% 3.0300% Debentures 15,812,578.72 0.025989 8.16% 6.1200% Term Loans 13,986,143.00 0.022988 4.04% 3.0300% Mortage 7,523,878.37 0.012366 3.79% 2.8388% Total 608,422,600.09 WACC Weighted Cost 0.0830807468239 0.0002810546485 0.0001992036456 0.0015905553435 0.0006965226684 0.0003510456337 8.620% Year Revenue Cost of Ore Cost Processing Ore Profit Before Taxes-6000000 \$0 (\$6,000,000) 1 \$16,000,000 -8000000 (\$4,500,000) \$3,500,000 2 \$16,400,000.000 -8000000 (\$4,500,000) \$3,900,000 3 \$16,810,000.000 -8000000 (\$4,500,000) \$4,310,000 Loss Carried Taxes (28%) Profit after TaPresent Value \$0 (\$6,000,000)-6000000 (\$2,500,000) \$3,500,000 3204834.7221 \$1,400,000 (\$392,000) \$3,508,000 2941269.16821 \$4,310,000 (\$1,206,800) \$3,103,200 2382443.14454 NPV \$ 2,528,547.03...
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