Sinking Fund

FCI $ 5,900,000.00
Salvage 15%
$ 885,000.00
alpha 0.15
n Dn by DB CumDep by DB
0 $ 1,041,176.47 $ 1,041,176.47
1 $ 885,000.00 $ 1,926,176.47
2 $ 619,500.00 $ 2,545,676.47
3 $ 430,663.13 $ 2,976,339.60
4 $ 308,996.09 $ 3,285,335.69
5 $ 228,925.35 $ 3,514,261.04
6 $ 171,972.44 $ 3,686,233.47
7 $ 126,954.58 $ 3,813,188.05
8 $ 91,572.69 $ 3,904,760.74
9 $ 63,948.90 $ 3,968,709.64
10 $ 42,551.86 $ 4,011,261.50
 Bn by DB Dn by SLD CumDep by SLD Bn by SLD Dep to use Dn to use
$ 5,900,000.00 $ 501,500.00 $ 501,500.00 $ 5,900,000.00 DB $ 1,041,176.47
$ 4,858,823.53 $ 441,535.95 $ 943,035.95 $ 5,398,500.00 DB $ 885,000.00
$ 3,973,823.53 $ 386,102.94 $ 1,329,138.89 $ 4,417,287.58 DB $ 619,500.00
$ 3,354,323.53 $ 352,760.50 $ 1,681,899.39 $ 3,587,720.59 DB $ 430,663.13
$ 2,923,660.40 $ 339,776.73 $ 2,021,676.13 $ 3,001,563.03 SLD $ 339,776.73
$ 2,614,664.31 $ 339,776.73 $ 2,361,452.86 $ 2,583,883.67 SLD $ 339,776.73
$ 2,354,958.32 $ 339,776.73 $ 2,701,229.60 $ 2,244,106.94 SLD $ 339,776.73
$ 2,072,134.50 $ 339,776.73 $ 3,041,006.33 $ 1,904,330.20 SLD $ 339,776.73
$ 1,777,375.63 $ 339,776.73 $ 3,380,783.06 $ 1,564,553.47 SLD $ 339,776.73
$ 1,472,980.77 $ 339,776.73 $ 3,720,559.80 $ 1,224,776.73 SLD $ 339,776.73
$ 1,160,827.83 $ 339,776.73 $ 4,060,336.53 $ 885,000.00 SLD $ 339,776.73
 5,900,000
15%
885000
CumDep to use Bn to use Dn Cum Bn
$ 1,041,176.47 $ 5,900,000.00 0 501500 5,900,000
$ 1,926,176.47 $ 4,858,823.53 1 501500 5,398,500
$ 2,545,676.47 $ 3,973,823.53 2 501500 4,897,000
$ 2,976,339.60 $ 3,354,323.53 3 501500 4,395,500
$ 3,316,116.33 $ 2,923,660.40 4 501500 3,894,000
$ 3,655,893.06 $ 2,583,883.67 5 501500 3,392,500
$ 3,995,669.80 $ 2,244,106.94 6 501500 2,891,000
$ 4,335,446.53 $ 1,904,330.20 7 501500 2,389,500
$ 4,675,223.27 $ 1,564,553.47 8 501500 1,888,000
$ 5,015,000.00 $ 1,224,776.73 9 501500 1,386,500
$ 5,354,776.73 $ 885,000.00 10 501500 885,000
FCI 43,000,000
Interest rate 8% biannual IR 3.92%
Tax 10%
Hours/yr 8160

1 2 3 4
NPV Factor 0.926 0.857 0.794 0.735

INVESTING PHASE
FCI 43,000,000
Interest 843,455
Total Bank Loan 43,843,455 47,350,932 38,792,770 28,933,767

LIN PURCHASES
Volume 3,729,028 3,729,028 3,729,028
Cost 29,832,224 29,832,224 29,832,224

PSA OPERATING COST

LIN Purchases Volume Sm3 106,544 106,544 106,544
Cost 1,278,524 1,278,524 1,278,524
Electricity 10,736,112 10,736,112 10,736,112
Operating Labor 480,000 480,000 480,000
Supervision & Clerical 144,000 144,000 144,000
Maintenance 1,290,000 1,290,000 1,290,000
Insurance 172,000 172,000 172,000
Depreciation 4,300,000 4,300,000 4,300,000
Interest 3,507,476 2,873,539 2,143,242
TOTAL 17,608,112 16,974,174 16,243,878

Savings with PSA 12,224,112 12,858,050 13,588,346

Income Tax on Savings 792,411 855,805 928,835
Net Savings 11,431,701 12,002,245 12,659,512

Cash Flows from PSA (43,843,455) 11,431,701 12,002,245 12,659,512

PV of Cash Flows (40,595,792) 9,800,841 9,527,769 9,305,119
NPV for each year (40,595,792) (30,794,951) (21,267,183) (11,962,064)
Payback NO NO NO
NPV by formula 42,879,286

IRR 26.753% 26.59

 5 6 7 8 9 10
0.681 0.630 0.583 0.540 0.500 0.463

17,576,196 4,492,274 (10,580,404) (27,182,340) (45,112,431) (64,476,929)

3,729,028 3,729,028 3,729,028 3,729,028 3,729,028 3,729,028

29,832,224 29,832,224 29,832,224 29,832,224 29,832,224 29,832,224

106,544 106,544 106,544 106,544 106,544 106,544

1,278,524 1,278,524 1,278,524 1,278,524 1,278,524 1,278,524
10,736,112 10,736,112 10,736,112 10,736,112 10,736,112 10,736,112
480,000 480,000 480,000 480,000 480,000 480,000
144,000 144,000 144,000 144,000 144,000 144,000
1,290,000 1,290,000 1,290,000 1,290,000 1,290,000 1,290,000
172,000 172,000 172,000 172,000 172,000 172,000
4,300,000 4,300,000 4,300,000 4,300,000 4,300,000 4,300,000
1,301,940 332,761 - - - -
15,402,576 14,433,397 14,100,636 14,100,636 14,100,636 14,100,636

14,429,648 15,398,827 15,731,588 15,731,588 15,731,588 15,731,588

1,012,965 1,109,883 1,143,159 1,143,159 1,143,159 1,143,159
13,416,683 14,288,944 14,588,429 14,588,429 14,588,429 14,588,429

13,416,683 14,288,944 14,588,429 14,588,429 14,588,429 14,588,429

9,131,169 9,004,459 8,512,208 7,881,674 7,297,847 6,757,265
(2,830,895) 6,173,564 14,685,772 22,567,447 29,865,294 36,622,559
NO 5.314 6.725 8.863 11.092 13.420
 11
0.429

(85,390,587)

3,729,028
29,832,224

106,544
1,278,524
10,736,112
480,000
144,000
1,290,000
172,000
4,300,000
-
14,100,636

15,731,588
1,143,159
14,588,429

14,588,429
6,256,727
42,879,286
15.853