Revenue Calculation

Energy sold to Tatopani hydro Electric project as a compens

Total Installed Capacity
Total Installed Capacity (KW)
(KW) 42000 42000
Annual Salable Energy:
225.044 Annual Salable Energy 4.728

Selling Rate to NEA Selling Rate to NEA

4.57 3.5
( Per KWh) ( Per KWh)
Revenue 1028.45 Revenue 16.55
Rvenue Escallation Rate Rvenue Escallation Rate for 10
for 10 Years 3% Years 0%
Electric project as a compensation
 Discounted Cash Flow Model
All figures in Thousands
Construction Peroid
S.N Particulars/Year -5 -4 -3 -2 -1 0 1 2 3 4
Investment 6511
Equity Investment
1 Debt Investment 254 567 665 1252 1174
Cummulative Debt 254 822 1487 2739 3913
Interest During Construction (IDC) 25.43 82.17 148.68 273.89 391.28 921
Revenue 3.00% 1028 1059 1091 1124
2
Other Revenue 17 17 17 17
3 O & M Cost 1.50%
100 Per 84 86 89 92
Escalation Rate Kw for
3.00%
15 Years
4 Royalty on Power Generation 4 4 4 4
and 1000
Royalty on Revenue (2% for 15 years after
2.00%15 21 22 22 23
and 10% after15 Years) Years
Insurance 1.00% 56 56 56 56
5 Profit before interest and tax (PBIDT) 880 908 936 966
6 Depriciation 224 224 224 224
7 Net operating profit (PBT) 657 684 713 742
8 Income Tax @ 21.5% 141 147 153 160
9 Profit After Tax (PAT) 515 537 560 583
(+) Depreciation 224 224 224 224
(-) Change in Working Capital 94 3 3 3
10 (-)Change in Capital expenditure
Salvage value
Terminal Value
11 Free Cash Flow 6511.10 645 758 780 803
12 Cumulative Cash Flow 6511.10 5866 5108 4328 3525
Calculation of Project NPV & IRR
 NPV (NRs. '000) 1343
FIRR (%) 12.38%
Payback Period (Years) 8.07
WACC 10.00%

Calculation of Equity NPV & IRR

1 Profit After Tax (PAT) 515 537 560 583
(+) Depreciation 224 224 224 224
(-) Change in Working Capital 94 3 3 3
2 (-)Change in Capital expenditure
Salvage value
Terminal Value
3 Cash Flow on Equity 1676.90 645 758 780 803
4 Less:Loan Payment 246 270 297 327
5 Less: Interest Paid 391 367 340 310
7 Equity Cash Flow 1676.90 8 121 144 167
Result
NPV on Equity 550
Equity IRR 17.84%
Market Hurdle Rate 15.00%
 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

1158 1192 1228 1265 1303 1342 1382 1424 1466 1510 1556 1602 1602 1602 1602 1602 1602 1602
17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17
94 97 100 103 106 109 113 116 120 123 127 131 135 139 143 147 151 156

4 4 4 4 4 4 4 4 4 4 4 42 42 42 42 42 42 42
23 24 25 26 26 27 28 29 30 31 31 162 162 162 162 162 162 162
56 56 56 56 56 56 56 56 56 56 56 56 56 56 56 56 56 56
996 1027 1059 1093 1127 1162 1198 1235 1274 1313 1354 1228 1225 1220 1216 1212 1208 1203
224 224 224 224 224 224 224 224 224 224 224 224 224 224 224 224 224 224
773 804 836 869 903 938 974 1012 1050 1090 1130 1005 1001 997 993 988 984 979
166 173 180 187 194 202 209 217 226 234 243 216 215 214 213 213 212 211
606 631 656 682 709 736 765 794 824 855 887 789 786 783 779 776 772 769
224 224 224 224 224 224 224 224 224 224 224 224 224 224 224 224 224 224
3 3 3 3 3 4 4 4 4 4 4 4 0 0 0 0 0 0
391

827 851 877 902 929 957 985 1014 653 1075 1107 1008 1009 1006 1003 999 996 992
2698 1846 970 67 862 1818 2803 3817 4470 5545 6652 7660 8669 9675 10678 11677 12672 13665
606 631 656 682 709 736 765 794 824 855 887 789 786 783 779 776 772 769
224 224 224 224 224 224 224 224 224 224 224 224 224 224 224 224 224 224
3 3 3 3 3 4 4 4 4 4 4 4 0 0 0 0 0 0
391

827 851 877 902 929 957 985 1014 653 1075 1107 1008 1009 1006 1003 999 996 992
359 395 435 478 526 579
277 241 202 158 111 58
190 215 240 266 292 320 985 1014 653 1075 1107 1008 1009 1006 1003 999 996 992
 23 24 25

1602 1602 1602

17 17 17
161 165 170

42 42 42
162 162 162
56 56 56
1198 1194 1189
224 224 224
975 970 965
210 209 207
765 761 758
224 224 224
0 0 0

0
0
988 985 981
14653 15638 16618
765 761 758
224 224 224
0 0 0

0
0
988 985 981

988 985 981

 Depriciable Expenses
Total Financial Cost at the End of C 5,590

Total Financial Cost @ 4%

S.N Year Depreciation Balance
0 2011 5590
1 2012 224 5366
2 2013 224 5142
3 2014 224 4919
4 2015 224 4695
5 2016 224 4472
6 2017 224 4248
7 2018 224 4025
8 2019 224 3801
9 2020 224 3577
10 2021 224 3354
11 2022 224 3130
12 2023 224 2907
13 2024 224 2683
14 2025 224 2459
15 2026 224 2236
16 2027 224 2012
17 2028 224 1789
18 2029 224 1565
19 2030 224 1342
20 2031 224 1118
21 2032 224 894
22 2033 224 671
23 2034 224 447
24 2035 224 224
25 2036 224 0 Salvage Value
Principal 3,913
Tax rate 22%
Interest rate 10%
Number of years 10
Loan Repayment 637

Beginning Less Loan Ending Interest

Year Balance Interest Payment Payment Balance of Loan(1-Tax)

1 3913 391 -637 246 3667 307

2 3667 367 -637 270 3397 288
3 3397 340 -637 297 3100 267
4 3100 310 -637 327 2773 243
5 2773 277 -637 359 2414 218
6 2414 241 -637 395 2019 189
7 2019 202 -637 435 1584 158
8 1584 158 -637 478 1105 124
9 1105 111 -637 526 579 87
10 579 58 -637 579 0 45
151 0.00 0.00 (636.78) (636.78)
152 (636.78) (5.31) (636.78) (1,278.87)
153 (1,278.87) (10.66) (636.78) (1,926.31)
154 (1,926.31) (16.05) (636.78) (2,579.15)
155 (2,579.15) (21.49) (636.78) (3,237.42)
156 (3,237.42) (26.98) (636.78) (3,901.18)
157 (3,901.18) (32.51) (636.78) (4,570.48)
158 (4,570.48) (38.09) (636.78) (5,245.35)
159 (5,245.35) (43.71) (636.78) (5,925.84)
160 (5,925.84) (49.38) (636.78) (6,612.01)
161 (6,612.01) (55.10) (636.78) (7,303.89)
162 (7,303.89) (60.87) (636.78) (8,001.54)
163 (8,001.54) (66.68) (636.78) (8,705.00)
164 (8,705.00) (72.54) (636.78) (9,414.33)
165 (9,414.33) (78.45) (636.78) (10,129.56)
166 (10,129.56) (84.41) (636.78) (10,850.76)
167 (10,850.76) (90.42) (636.78) (11,577.96)
168 (11,577.96) (96.48) (636.78) (12,311.23)
169 (12,311.23) (102.59) (636.78) (13,050.60)
170 (13,050.60) (108.76) (636.78) (13,796.14)
171 (13,796.14) (114.97) (636.78) (14,547.89)
172 (14,547.89) (121.23) (636.78) (15,305.91)
173 (15,305.91) (127.55) (636.78) (16,070.24)
174 (16,070.24) (133.92) (636.78) (16,840.94)
175 (16,840.94) (140.34) (636.78) (17,618.07)
176 (17,618.07) (146.82) (636.78) (18,401.67)
177 (18,401.67) (153.35) (636.78) (19,191.80)
178 (19,191.80) (159.93) (636.78) (19,988.51)
179 (19,988.51) (166.57) (636.78) (20,791.86)
180 (20,791.86) (173.27) (636.78) (21,601.91)
181 (21,601.91) (180.02) (636.78) (22,418.71)
182 (22,418.71) (186.82) (636.78) (23,242.32)
183 (23,242.32) (193.69) (636.78) (24,072.79)
184 (24,072.79) (200.61) (636.78) (24,910.18)
185 (24,910.18) (207.58) (636.78) (25,754.54)
186 (25,754.54) (214.62) (636.78) (26,605.95)
187 (26,605.95) (221.72) (636.78) (27,464.45)
188 (27,464.45) (228.87) (636.78) (28,330.10)
189 (28,330.10) (236.08) (636.78) (29,202.97)
190 (29,202.97) (243.36) (636.78) (30,083.11)
191 (30,083.11) (250.69) (636.78) (30,970.58)
192 (30,970.58) (258.09) (636.78) (31,865.45)
193 (31,865.45) (265.55) (636.78) (32,767.78)
194 (32,767.78) (273.06) (636.78) (33,677.63)
195 (33,677.63) (280.65) (636.78) (34,595.06)
196 (34,595.06) (288.29) (636.78) (35,520.13)
197 (35,520.13) (296.00) (636.78) (36,452.92)
198 (36,452.92) (303.77) (636.78) (37,393.48)
199 (37,393.48) (311.61) (636.78) (38,341.87)
200 (38,341.87) (319.52) (636.78) (39,298.17)
201 (39,298.17) (327.48) (636.78) (40,262.44)
202 (40,262.44) (335.52) (636.78) (41,234.74)
203 (41,234.74) (343.62) (636.78) (42,215.15)
204 (42,215.15) (351.79) (636.78) (43,203.72)
205 (43,203.72) (360.03) (636.78) (44,200.54)
206 (44,200.54) (368.34) (636.78) (45,205.66)
207 (45,205.66) (376.71) (636.78) (46,219.15)
208 (46,219.15) (385.16) (636.78) (47,241.10)
209 (47,241.10) (393.68) (636.78) (48,271.55)
210 (48,271.55) (402.26) (636.78) (49,310.60)
211 (49,310.60) (410.92) (636.78) (50,358.30)
212 (50,358.30) (419.65) (636.78) (51,414.74)
213 (51,414.74) (428.46) (636.78) (52,479.98)
214 (52,479.98) (437.33) (636.78) (53,554.10)
215 (53,554.10) (446.28) (636.78) (54,637.16)
216 (54,637.16) (455.31) (636.78) (55,729.25)
217 (55,729.25) (464.41) (636.78) (56,830.45)
218 (56,830.45) (473.59) (636.78) (57,940.82)
219 (57,940.82) (482.84) (636.78) (59,060.44)
220 (59,060.44) (492.17) (636.78) (60,189.39)
221 (60,189.39) (501.58) (636.78) (61,327.76)
222 (61,327.76) (511.06) (636.78) (62,475.60)
223 (62,475.60) (520.63) (636.78) (63,633.02)
224 (63,633.02) (530.28) (636.78) (64,800.07)
225 (64,800.07) (540.00) (636.78) (65,976.86)
226 (65,976.86) (549.81) (636.78) (67,163.45)
227 (67,163.45) (559.70) (636.78) (68,359.93)
228 (68,359.93) (569.67) (636.78) (69,566.37)
229 (69,566.37) (579.72) (636.78) (70,782.88)
230 (70,782.88) (589.86) (636.78) (72,009.52)
231 (72,009.52) (600.08) (636.78) (73,246.38)
232 (73,246.38) (610.39) (636.78) (74,493.55)
233 (74,493.55) (620.78) (636.78) (75,751.11)
234 (75,751.11) (631.26) (636.78) (77,019.15)
235 (77,019.15) (641.83) (636.78) (78,297.76)
236 (78,297.76) (652.48) (636.78) (79,587.03)
237 (79,587.03) (663.23) (636.78) (80,887.03)
238 (80,887.03) (674.06) (636.78) (82,197.88)
239 (82,197.88) (684.98) (636.78) (83,519.64)
240 (83,519.64) (696.00) (636.78) (84,852.42)
241 (84,852.42) (707.10) (636.78) (86,196.31)
242 (86,196.31) (718.30) (636.78) (87,551.39)
243 (87,551.39) (729.59) (636.78) (88,917.77)
244 (88,917.77) (740.98) (636.78) (90,295.53)
245 (90,295.53) (752.46) (636.78) (91,684.78)
246 (91,684.78) (764.04) (636.78) (93,085.60)
247 (93,085.60) (775.71) (636.78) (94,498.10)
248 (94,498.10) (787.48) (636.78) (95,922.37)
249 (95,922.37) (799.35) (636.78) (97,358.50)
250 (97,358.50) (811.32) (636.78) (98,806.61)
251 (98,806.61) (823.39) (636.78) (100,266.78)
252 (100,266.78) (835.56) (636.78) (101,739.12)
253 (101,739.12) (847.83) (636.78) (103,223.73)
254 (103,223.73) (860.20) (636.78) (104,720.71)
255 (104,720.71) (872.67) (636.78) (106,230.16)
256 (106,230.16) (885.25) (636.78) (107,752.20)
257 (107,752.20) (897.93) (636.78) (109,286.91)
258 (109,286.91) (910.72) (636.78) (110,834.42)
259 (110,834.42) (923.62) (636.78) (112,394.82)
260 (112,394.82) (936.62) (636.78) (113,968.23)
261 (113,968.23) (949.74) (636.78) (115,554.75)
262 (115,554.75) (962.96) (636.78) (117,154.49)
263 (117,154.49) (976.29) (636.78) (118,767.56)
264 (118,767.56) (989.73) (636.78) (120,394.07)
265 (120,394.07) (1,003.28) (636.78) (122,034.14)
266 (122,034.14) (1,016.95) (636.78) (123,687.87)
267 (123,687.87) (1,030.73) (636.78) (125,355.39)
268 (125,355.39) (1,044.63) (636.78) (127,036.80)
269 (127,036.80) (1,058.64) (636.78) (128,732.22)
270 (128,732.22) (1,072.77) (636.78) (130,441.77)
271 (130,441.77) (1,087.01) (636.78) (132,165.57)
272 (132,165.57) (1,101.38) (636.78) (133,903.73)
273 (133,903.73) (1,115.86) (636.78) (135,656.38)
274 (135,656.38) (1,130.47) (636.78) (137,423.63)
275 (137,423.63) (1,145.20) (636.78) (139,205.61)
276 (139,205.61) (1,160.05) (636.78) (141,002.44)
277 (141,002.44) (1,175.02) (636.78) (142,814.24)
278 (142,814.24) (1,190.12) (636.78) (144,641.15)
279 (144,641.15) (1,205.34) (636.78) (146,483.27)
280 (146,483.27) (1,220.69) (636.78) (148,340.75)
281 (148,340.75) (1,236.17) (636.78) (150,213.70)
282 (150,213.70) (1,251.78) (636.78) (152,102.27)
283 (152,102.27) (1,267.52) (636.78) (154,006.57)
284 (154,006.57) (1,283.39) (636.78) (155,926.74)
285 (155,926.74) (1,299.39) (636.78) (157,862.91)
286 (157,862.91) (1,315.52) (636.78) (159,815.22)
287 (159,815.22) (1,331.79) (636.78) (161,783.80)
288 (161,783.80) (1,348.20) (636.78) (163,768.78)
289 (163,768.78) (1,364.74) (636.78) (165,770.30)
290 (165,770.30) (1,381.42) (636.78) (167,788.50)
291 (167,788.50) (1,398.24) (636.78) (169,823.52)
292 (169,823.52) (1,415.20) (636.78) (171,875.50)
293 (171,875.50) (1,432.30) (636.78) (173,944.58)
294 (173,944.58) (1,449.54) (636.78) (176,030.90)
295 (176,030.90) (1,466.92) (636.78) (178,134.61)
296 (178,134.61) (1,484.46) (636.78) (180,255.85)
297 (180,255.85) (1,502.13) (636.78) (182,394.76)
298 (182,394.76) (1,519.96) (636.78) (184,551.50)
299 (184,551.50) (1,537.93) (636.78) (186,726.21)
300 (186,726.21) (1,556.05) (636.78) (188,919.05)
301 (188,919.05) (1,574.33) (636.78) (191,130.15)
302 (191,130.15) (1,592.75) (636.78) (193,359.69)
303 (193,359.69) (1,611.33) (636.78) (195,607.80)
304 (195,607.80) (1,630.07) (636.78) (197,874.65)
305 (197,874.65) (1,648.96) (636.78) (200,160.39)
306 (200,160.39) (1,668.00) (636.78) (202,465.17)
307 (202,465.17) (1,687.21) (636.78) (204,789.17)
308 (204,789.17) (1,706.58) (636.78) (207,132.53)
309 (207,132.53) (1,726.10) (636.78) (209,495.41)
310 (209,495.41) (1,745.80) (636.78) (211,877.99)
311 (211,877.99) (1,765.65) (636.78) (214,280.42)
312 (214,280.42) (1,785.67) (636.78) (216,702.88)
313 (216,702.88) (1,805.86) (636.78) (219,145.52)
314 (219,145.52) (1,826.21) (636.78) (221,608.51)
315 (221,608.51) (1,846.74) (636.78) (224,092.03)
316 (224,092.03) (1,867.43) (636.78) (226,596.25)
317 (226,596.25) (1,888.30) (636.78) (229,121.34)
318 (229,121.34) (1,909.34) (636.78) (231,667.46)
319 (231,667.46) (1,930.56) (636.78) (234,234.81)
320 (234,234.81) (1,951.96) (636.78) (236,823.55)
321 (236,823.55) (1,973.53) (636.78) (239,433.86)
322 (239,433.86) (1,995.28) (636.78) (242,065.92)
323 (242,065.92) (2,017.22) (636.78) (244,719.92)
324 (244,719.92) (2,039.33) (636.78) (247,396.04)
325 (247,396.04) (2,061.63) (636.78) (250,094.46)
326 (250,094.46) (2,084.12) (636.78) (252,815.36)
327 (252,815.36) (2,106.79) (636.78) (255,558.94)
328 (255,558.94) (2,129.66) (636.78) (258,325.38)
329 (258,325.38) (2,152.71) (636.78) (261,114.87)
330 (261,114.87) (2,175.96) (636.78) (263,927.61)
331 (263,927.61) (2,199.40) (636.78) (266,763.79)
332 (266,763.79) (2,223.03) (636.78) (269,623.61)
333 (269,623.61) (2,246.86) (636.78) (272,507.25)
334 (272,507.25) (2,270.89) (636.78) (275,414.93)
335 (275,414.93) (2,295.12) (636.78) (278,346.84)
336 (278,346.84) (2,319.56) (636.78) (281,303.18)
337 (281,303.18) (2,344.19) (636.78) (284,284.15)
338 (284,284.15) (2,369.03) (636.78) (287,289.97)
339 (287,289.97) (2,394.08) (636.78) (290,320.83)
340 (290,320.83) (2,419.34) (636.78) (293,376.96)
341 (293,376.96) (2,444.81) (636.78) (296,458.55)
342 (296,458.55) (2,470.49) (636.78) (299,565.82)
343 (299,565.82) (2,496.38) (636.78) (302,698.98)
344 (302,698.98) (2,522.49) (636.78) (305,858.26)
345 (305,858.26) (2,548.82) (636.78) (309,043.86)
346 (309,043.86) (2,575.37) (636.78) (312,256.01)
347 (312,256.01) (2,602.13) (636.78) (315,494.92)
348 (315,494.92) (2,629.12) (636.78) (318,760.83)
349 (318,760.83) (2,656.34) (636.78) (322,053.96)
350 (322,053.96) (2,683.78) (636.78) (325,374.52)
351 (325,374.52) (2,711.45) (636.78) (328,722.76)
352 (328,722.76) (2,739.36) (636.78) (332,098.90)
353 (332,098.90) (2,767.49) (636.78) (335,503.17)
354 (335,503.17) (2,795.86) (636.78) (338,935.81)
355 (338,935.81) (2,824.47) (636.78) (342,397.06)
356 (342,397.06) (2,853.31) (636.78) (345,887.15)
357 (345,887.15) (2,882.39) (636.78) (349,406.33)
358 (349,406.33) (2,911.72) (636.78) (352,954.83)
359 (352,954.83) (2,941.29) (636.78) (356,532.90)
360 (356,532.90) (2,971.11) (636.78) (360,140.80)
Cash Flow Statement for 10 years

Period in Years 1 2 3 4 5 6 7 8 9 10
Month in Years 12 12 12 12 12 12 12 12 12 12

Cash Flow from operating activities

PAT 515.41 537.17 559.58 582.67 606.45 630.94 656.17 682.15 708.92 736.48
Add:Depreciation 223.59 223.59 223.59 223.59 223.59 223.59 223.59 223.59 223.59 223.59
Add:(increasee)/Decrease in working capital 94.07 2.78 2.86 2.95 3.04 3.13 3.22 3.32 3.42 3.52

Net cash flow from Operating activities 644.92 666.69 780.31 803.31 827.00 851.40 876.53 902.42 929.08 956.55

Cash flow from financing activities

Borrowings 3,913 0 0 0 0 0 0 0 0 0
Equity capital 1,677 0 0 0 0 0 0 0 0 0
IDC 921
Less:Repayment of Term loan (245.51) (270.06) (297.06) (326.77) (359.45) (395.39) (434.93) (478.42) (526.27) (578.89)
Less:Repayment of interest (391.28) (366.72) (339.72) (310.01) (277.34) (241.39) (201.85) (158.36) (110.52) (57.89)

Net cash flow from financing activities 5874.32 -636.78 -636.78 -636.78 -636.78 -636.78 -636.78 -636.78 -636.78 -636.78

Cash flow from investing activities (6511.10) 0 0 0 0 0 0 0 0 0

Net cash flow from Investing activities -6,511 0 0 0 0 0 0 0 0 0

Net cashflows 8.14 29.90 143.52 166.52 190.21 214.61 239.75 265.64 292.30 319.76
Opening balance 0 8.14 38.04 181.57 348.09 538.30 752.92 992.67 1258.30 1550.60
Closing balance 8.14 38.04 181.57 348.09 538.30 752.92 992.67 1258.30 1550.60 1870.36