Kidman Project Apraisal 2.xlsx - Option 1 Project Analysis of Kidman Contruction and Installation Installation of New Refinery Processsing Plant Other

Kidman Project Apraisal 2.xlsx - Option 1 Project Analysis...

This preview shows page 1 - 7 out of 7 pages.

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
Image of page 1

Subscribe to view the full document.

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 0 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
Image of page 2
Image of page 3

Subscribe to view the full document.

Image of page 4
Image of page 5

Subscribe to view the full document.

Image of page 6
Image of page 7

Unformatted text preview: 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 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 1 ($5,000,000.00) $4,200,000.00 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?...
View Full Document

  • Spring '17
  • HERICK ONDIGO

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes