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$400,000
Discounted
Non-discounted
$300,000
$200,000
Plant startup
$100,000
$0
Net Present Value
(Discounted)
-$100,000
Discounted payback period
-$200,000
0
10
12
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
I
J
K
L
(W.R. Wilcox, Clarkson U, Oct 2004)
Revised June 2007
Cland
$2,500
CTDC
Cstartup
$30,000
$40,000
SR
COMd
GE
IT
$120,000
$120,000
$120,000
$120,000
$120,000
$120,000
$120,000
$120,000
$120,000
$120,000
$23,100
$23,100
$23,100
$23,100
$23,100
$23,100
$23,100
$23,100
$23,100
$23,100
$14,000
$22,400
$13,440
$8,064
$8,064
$4,032
$10,770
$10,350
$13,038
$14,651
$14,651
$15,860
$17,070
$17,070
$17,070
$17,070
$60,000
$7,000
-$2,500
CWC
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
-$60,000 $200,000
CF
-$2,500
-$30,000
-$100,000
$39,130
$46,550
$43,862
$42,249
$42,249
$41,040
$39,830
$39,830
$39,830
$102,330
NPV =
DCF
-$2,500
-$27,273
-$82,645
$29,399
$31,794
$27,235
$23,849
$21,681
$19,145
$16,892
$15,356
$13,960
$32,605
$119,499
Total
DCF
-$2,500
-$29,773
-$112,417
-$83,018
-$51,224
-$23,989
-$141
$21,540
$40,685
$57,577
$72,933
$86,893
$119,499
Total
Disc land
CF
+ WC
-$2,500
-$32,500
-$132,500
-$93,370 $46,957
-$46,820 $42,688
-$2,958 $38,808
$39,291 $35,280
$81,540 $32,072
$122,580 $29,157
$162,410 $26,506
$202,240 $24,096
$242,070 $21,906
$344,400 $19,914
CTCI = Total capital investment, TCI = Cland + CTDC + Cstartup + CWC, asssuming no royalties must be paid for process.
n = year since beginning of construction
Cland = cost of land
(FCIL)
25 CTDC = total depreciable capital = 1.18(CTBM+Csite+Cbuildings+Coffsite facilities)
26 CTBM = Total bare module cost = installed cost of all equipment, etc. = Inside Battery Limits Investment (ISBL)
27 Cstartup
28 CWC =
29 SR =
30 COMd
31 GE =
32
D=
33
IT =
34
r=
35 CF =
36
37
38
39
40
41
42
= startup cost
working capital
sales revenues (from sale of product)
= Cost of manufacturing (without depreciation).
General expenses
Depreciation (5-year MACRS used here)
Federal and state income tax = r*(SR - Cstartup - COMd - GE - D) for that year.
Total income tax rate
(30% used here)
Cash flow for that year = SR - Cland - CTDC - Cstartup - CWC - COMd - GE - IT
n
A
43
B
C
About 4.5 years here.
P
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