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Prepared by Bebot 11/27/2009 Page 1

PROJECT PROPOSAL: FARM EQUIPMENT POOL


LOCATION : PROVINCE WIDE

A.) INVESTMENT COST:

QUANTITY UNIT DESCRIPTION UNIT PRICE TOTAL

1.00 Unit Machinery Shed 200,000.00 200,000.00


4.00 Units Hand Tractor 64,200.00 256,800.00
3.00 Units Floating Tiller w/o Engine 32,694.00 98,082.00
1.00 Unit 35 Hp 4 WD Tractor 1,125,900.00 1,125,900.00
4.00 Units Rice Thresher 57,000.00 228,000.00
1.00 Unit Rice Reaper 1200 C 143,000.00 143,000.00
1.00 Unit Combined Harvester RX - 3650 455,000.00 455,000.00
1.00 Unit Mechanical Dryer 192,000.00 192,000.00
TOTAL 2,698,782.00

B.) WORKING CAPITAL:

Fuel 64,972.00
Oil and Lubrication 12,535.30
Repair and Maintenance 108,733.65
Labor 136,950.00
TOTAL 323,190.95
ESTIMATED PROJECT COST 3,021,972.95

FINANCIAL ANALYSIS:

NPV FEASIBLE
IRR FEASIBLE
BCR FEASIBLE
ROI 25.84%
PAYBACK 3.87

Book1 FARM EQUIPMENT POOL


Prepared by Bebot 11/27/2009 Page 2

SCHEDULE OF INCOME:

PARTICULARS RATE HRS.OPER. QUANTITY AMOUNT

Hand Tractor 70.00 432 4 120,960.00


Floating Tiller 70.00 432 3 90,720.00
4 WD Tractor 750.00 800 1 600,000.00
Rice Thresher 150.00 432 4 259,200.00
Reaper 145.00 432 1 62,640.00
Combined Harvester 240.00 480 1 115,200.00
Mech'l. Dryer 100.00 432 1 43,200.00
1,291,920.00

AMORTIZATION SCHEDULE:

PERIOD INTEREST AMORTIZATION PRINCIPAL PRINCIPAL


5% PAYMENT BALANCE
0 2,498,782.00
1 124,939.10 323,603.70 198,664.60 2,300,117.40
2 115,005.87 323,603.70 208,597.83 2,091,519.57
3 104,575.98 323,603.70 219,027.72 1,872,491.85
4 93,624.59 323,603.70 229,979.11 1,642,512.74
5 82,125.64 323,603.70 241,478.06 1,401,034.67
6 70,051.73 323,603.70 253,551.97 1,147,482.71
7 57,374.14 323,603.70 266,229.57 881,253.14
8 44,062.66 323,603.70 279,541.04 601,712.10
9 30,085.60 323,603.70 293,518.10 308,194.00
10 15,409.70 323,603.70 308,194.00 -

DEPRECIATION SCHEDULE:

Straight Line Method:


Project Cost: 2,698,782.00
Period (years) 10.00

Depreciation = Project Cost / Economic Life

Depreciation = 269,878.20

Book1 FARM EQUIPMENT POOL


Bebot Page 3 11/27/2009

BREAK-EVEN ANALYSIS:

PARTICULAR FUEL OIL & REPAIR & LABOR INTEREST DEP'N. TOTAL HOURS BREAK-EVEN
LUBRICANT MAINTENANCE OPER. COST/hr.

Hand Tractor 22,200.00 5,568.00 51,360.00 48,600.00 33,317.09 25,680.00 186,725.09 1,920 97.25
Floating Tiller 16,650.00 4,176.00 14,712.30 36,450.00 24,987.82 9,808.20 106,784.32 1,440 74.16
4 WD tractor 45,584.00 4,638.60 56,295.00 15,000.00 8,329.27 112,590.00 242,436.87 800 303.05
Rice Thresher 22,200.00 5,568.00 45,600.00 48,600.00 33,317.09 22,800.00 178,085.09 1,920 92.75
Reaper 6,660.00 1,392.00 7,150.00 12,150.00 8,329.27 14,300.00 49,981.27 480 104.13
Combined Harvester 11,100.00 2,336.00 22,750.00 9,000.00 8,329.27 45,500.00 99,015.27 480 206.28
Mech'l. Dryer 5,550.00 1,392.00 9,600.00 8,100.00 8,329.27 19,200.00 52,171.27 480 108.69
TOTAL 129,944.00 25,070.60 217,467.30 273,900.00 124,939.10 269,878.20 915,199.20 7,520 986.31

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SCHEDULE OF EXPENSES:

A.) FUEL EXPENSES:

PARTICULARS CONSUMPTION DIESEL PRICE NO. OF UNIT HRS. OPER. AMOUNT


Liter/hr.

Hand Tractor 1.25 9.25 4 480.00 22,200.00


Floating Tiller 1.25 9.25 3 480.00 16,650.00
4 WD Tractor 6.16 9.25 1 800.00 45,584.00
Rice Thresher 1.25 9.25 4 480.00 22,200.00
Reaper 1.5 9.25 1 480.00 6,660.00
Combined Harvester 2.5 9.25 1 480.00 11,100.00
Mech'l. Dryer 1.25 9.25 1 480.00 5,550.00
TOTAL 129,944.00

B.) OIL AND LUBRICATION:

PARTICULARS CONSUMPTION UNIT PRICE HRS. OPER. AMOUNT


Liter/hr. PER 100 HRS.

Tillers,Floating,
Reaper, Threshers, etc.
Engine Oil 2.00 75.00 62.40 9,360.00
Lubricating Oil 2.00 70.00 62.40 8,736.00

4 WD Tractor
Engine Oil 8.00 75.00 4.00 2,400.00
Lubricating Oil 6.00 70.00 5.33 2,238.60

Combined Harvester
Engine Oil 6.00 75.00 3.20 1,440.00
Lubricating Oil 4.00 70.00 3.20 896.00

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TOTAL 25,070.60

C.) REPAIR AND MAINTENANCE:

PARTICULARS UNITS ACQUISITION COST PERCENT AMOUNT

Machinery Shed 1 200,000.00 5% 10,000.00


Hand Tractor 4 256,800.00 5% 51,360.00
Floating Tiller 3 98,082.00 5% 14,712.30
4 WD Tractor 1 1,125,900.00 5% 56,295.00
Rice Thresher 4 228,000.00 5% 45,600.00
Reaper 1 143,000.00 5% 7,150.00
Combined Harvester 1 455,000.00 5% 22,750.00
Mech'l. Dryer 1 192,000.00 5% 9,600.00
TOTAL 217,467.30

D.) LABOR EXPENSES:

PARTICULARS RATE NO. OF DAYS NO. OF UNITS AMOUNT

Hand Tractor 150.00 54.00 4 32,400.00


75.00 54.00 4 16,200.00
Floating Tiller 150.00 54.00 3 24,300.00
75.00 54.00 3 12,150.00
4 WD Tractor 150.00 100.00 1 15,000.00
Rice Thresher 150.00 54.00 4 32,400.00
75.00 54.00 4 16,200.00
Reaper 150.00 54.00 1 8,100.00
75.00 54.00 1 4,050.00
Combined Harvester 150.00 60.00 1 9,000.00
Mech'l. Dryer 150.00 54.00 1 8,100.00
SUB-TOTAL 177,900.00
Manager's Salary 8000.00 12.00 96,000.00
TOTAL 273,900.00

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FINANCIAL ANALYSIS

PROJECT : FARM EQUIPMENT POOL


LOCATION: PROVINCE WIDE

DISCOUNTED DISCOUNTED
YEAR PROJECT COST OPERATING COST TOTAL COST BENEFITS NET RETURN COST @ BENEFITS @
19% 19%
0 2,698,782.00 2,698,782.00 (2,698,782.00) 2,698,782.00 0
1 1,041,199.20 969,985.60 1,291,920.00 321,934.40 815,113.95 1,085,647.06
2 1,081,930.50 1,020,650.13 1,421,112.00 400,461.87 720,747.22 1,003,539.30
3 1,126,439.91 1,075,589.43 1,563,223.20 487,633.77 638,271.78 927,641.37
4 1,175,083.03 1,135,183.94 1,719,545.52 584,361.58 566,080.76 857,483.62
5 1,228,249.34 1,199,849.21 1,891,500.07 691,650.87 502,796.05 792,631.92
6 1,286,365.43 1,270,039.20 2,080,650.08 810,610.88 447,234.56 732,684.96
7 1,349,898.56 1,346,249.93 2,288,715.09 942,465.16 398,379.48 677,271.82
8 1,419,360.58 1,429,023.43 2,517,586.60 1,088,563.17 355,356.00 626,049.58
9 1,495,312.23 1,518,952.13 2,769,345.26 1,250,393.13 317,410.61 578,701.29
10 1,578,367.83 1,616,683.63 3,046,279.78 1,429,596.15 283,893.49 534,933.97
TOTAL 2,698,782.00 12,782,206.62 15,280,988.62 20,589,877.59 5,308,888.97 7,744,065.89 7,816,584.87
NPV @ 16% $8,767.36 FEASIBLE
IRR 20% FEASIBLE
BCR 1.01 FEASIBLE

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SENSITIVITY ANALYSIS:

5% Increase in Cost

DISCOUNTED DISCOUNTED
YEAR PROJECT COST OPERATING COST TOTAL COST BENEFITS NET RETURN COST @ BENEFITS @
16% 16%
0 2,698,782.00 2,698,782.00 (2,698,782.00) 2,698,782.00 -
1 1,093,259.16 1,093,259.16 1,291,920.00 198,660.84 942,464.79 1,113,724.14
2 1,136,027.03 1,136,027.03 1,421,112.00 285,084.97 844,253.14 1,056,117.72
3 1,182,761.90 1,182,761.90 1,563,223.20 380,461.30 757,745.49 1,001,490.94
4 1,233,837.18 1,233,837.18 1,719,545.52 485,708.34 681,437.29 949,689.68
5 1,289,661.81 1,289,661.81 1,891,500.07 601,838.26 614,024.77 900,567.80
6 1,350,683.70 1,350,683.70 2,080,650.08 729,966.38 554,377.66 853,986.71
7 1,417,393.49 1,417,393.49 2,288,715.09 871,321.60 501,515.67 809,814.98
8 1,490,328.61 1,490,328.61 2,517,586.60 1,027,257.98 454,588.17 767,928.00
9 1,570,077.84 1,570,077.84 2,769,345.26 1,199,267.41 412,856.65 728,207.59
10 1,657,286.23 1,657,286.23 3,046,279.78 1,388,993.56 375,679.61 690,541.68
TOTAL 2,698,782.00 13,421,316.95 16,120,098.95 20,589,877.59 4,469,778.64 8,837,725.25 8,872,069.24
NPV@ 11% (223,333.41) NON-FEASIBLE
IRR 16% FEASIBLE
BCR 1.00 FEASIBLE

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PROJECTED INCOME STATEMENT


Period 10 Years

PARTICULARS 1 2 3 4 5 6 7 8 9 10

REVENUE:
Hand Tractor 120,960.00 133,056.00 146,361.60 160,997.76 177,097.54 194,807.29 214,288.02 235,716.82 259,288.50 285,217.35
Floating Tiller 90,720.00 99,792.00 109,771.20 120,748.32 132,823.15 146,105.47 160,716.01 176,787.62 194,466.38 213,913.01
4 WD Tractor 600,000.00 660,000.00 726,000.00 798,600.00 878,460.00 966,306.00 1,062,936.60 1,169,230.26 1,286,153.29 1,414,768.61
Rice Thresher 259,200.00 285,120.00 313,632.00 344,995.20 379,494.72 417,444.19 459,188.61 505,107.47 555,618.22 611,180.04
Reaper 62,640.00 68,904.00 75,794.40 83,373.84 91,711.22 100,882.35 110,970.58 122,067.64 134,274.40 147,701.84
Combined Harvester 115,200.00 126,720.00 139,392.00 153,331.20 168,664.32 185,530.75 204,083.83 224,492.21 246,941.43 271,635.57
Mechanical Dryer 43,200.00 47,520.00 52,272.00 57,499.20 63,249.12 69,574.03 76,531.44 84,184.58 92,603.04 101,863.34
GROSS REVENUE: 1,291,920.00 1,421,112.00 1,563,223.20 1,719,545.52 1,891,500.07 2,080,650.08 2,288,715.09 2,517,586.60 2,769,345.26 3,046,279.78

OPERATING EXPENSES:
Fuel 129,944.00 140,339.52 151,566.68 163,692.02 176,787.38 190,930.37 206,204.80 222,701.18 240,517.28 259,758.66
Oil & Lubricant 25,070.60 27,076.25 29,242.35 31,581.74 34,108.27 36,836.94 39,783.89 42,966.60 46,403.93 50,116.25
Repair & Maintenance 217,467.30 228,340.67 239,757.70 251,745.58 264,332.86 277,549.51 291,426.98 305,998.33 321,298.25 337,363.16
Labor 273,900.00 301,290.00 331,419.00 364,560.90 401,016.99 441,118.69 485,230.56 533,753.61 587,128.98 645,841.87
Depreciation 269,878.20 269,878.20 269,878.20 269,878.20 269,878.20 269,878.20 269,878.20 269,878.20 269,878.20 269,878.20
Interest 124,939.10 115,005.87 104,575.98 93,624.59 82,125.64 70,051.73 57,374.14 44,062.66 30,085.60 15,409.70
TOTAL EXPENSES: 1,041,199.20 1,081,930.50 1,126,439.91 1,175,083.03 1,228,249.34 1,286,365.43 1,349,898.56 1,419,360.58 1,495,312.23 1,578,367.83
NET INCOME 250,720.80 339,181.50 436,783.29 544,462.49 663,250.73 794,284.65 938,816.52 1,098,226.01 1,274,033.02 1,467,911.95
AVERAGE INCOME 780,767.10
ROI 25.84%
PAYBACK PERIOD 3.87

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PROJECT CASHFLOW
Period 10 Years

PARTICULARS 1 2 3 4 5 6 7 8 9 10

CASH INFLOW:
Revenue 1,291,920.00 1,421,112.00 1,563,223.20 1,719,545.52 1,891,500.07 2,080,650.08 2,288,715.09 2,517,586.60 2,769,345.26 3,046,279.78
TOTAL CASH INFLOW 1,291,920.00 1,421,112.00 1,563,223.20 1,719,545.52 1,891,500.07 2,080,650.08 2,288,715.09 2,517,586.60 2,769,345.26 3,046,279.78

CASH OUTFLOW:
Operating Cost:
Fuel 129,944.00 140,339.52 151,566.68 163,692.02 176,787.38 190,930.37 206,204.80 222,701.18 240,517.28 259,758.66
Oil & Lubricants 25,070.60 27,076.25 29,242.35 31,581.74 34,108.27 36,836.94 39,783.89 42,966.60 46,403.93 50,116.25
Repair & Maintenance 217,467.30 228,340.67 239,757.70 251,745.58 264,332.86 277,549.51 291,426.98 305,998.33 321,298.25 337,363.16
Labor 273,900.00 301,290.00 331,419.00 364,560.90 401,016.99 441,118.69 485,230.56 533,753.61 587,128.98 645,841.87
Amortization 323,603.70 323,603.70 323,603.70 323,603.70 323,603.70 323,603.70 323,603.70 323,603.70 323,603.70 323,603.70
TOTAL CASH OUTFLOW 969,985.60 1,020,650.13 1,075,589.43 1,135,183.94 1,199,849.21 1,270,039.20 1,346,249.93 1,429,023.43 1,518,952.13 1,616,683.63
NET CASH FLOW 321,934.40 400,461.87 487,633.77 584,361.58 691,650.87 810,610.88 942,465.16 1,088,563.17 1,250,393.13 1,429,596.15
ENDING BALANCE - 722,396.27 1,210,030.04 1,794,391.62 2,486,042.49 3,296,653.37 4,239,118.53 5,327,681.70 6,578,074.82 8,007,670.97

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Bebot Page 10 11/27/2009

PROJECTED BALANCE SHEET


Period 10 Years

PARTICULARS 1 2 3 4 5 6 7 8 9 10

ASSETS:
Current Assets:
Cash 321,934.40 722,396.27 1,210,030.04 1,794,391.62 2,486,042.49 3,296,653.37 4,239,118.53 5,327,681.70 6,578,074.82 8,007,670.97
Fixed Assets:
Building & Equipment 2,698,782.00 2,698,782.00 2,698,782.00 2,698,782.00 2,698,782.00 2,698,782.00 2,698,782.00 2,698,782.00 2,698,782.00 2,698,782.00
Less:Accom. Depr'n. 269,878.20 539,756.40 809,634.60 1,079,512.80 1,349,391.00 1,619,269.20 1,889,147.40 2,159,025.60 2,428,903.80 2,698,782.00
Net of Bldg. & Equipt. 2,428,903.80 2,159,025.60 1,889,147.40 1,619,269.20 1,349,391.00 1,079,512.80 809,634.60 539,756.40 269,878.20 -
TOTAL ASSETS 2,750,838.20 2,881,421.87 3,099,177.44 3,413,660.82 3,835,433.49 4,376,166.17 5,048,753.13 5,867,438.10 6,847,953.02 8,007,670.97

LIABILITIES:
Loans Payable 2,300,117.40 2,091,519.57 1,872,491.85 1,642,512.74 1,401,034.67 1,147,482.71 881,253.14 601,712.10 308,194.00 -
Equity 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
Retained Earnings 250,720.80 589,902.30 1,026,685.59 1,571,148.08 2,234,398.81 3,028,683.46 3,967,499.99 5,065,726.00 6,339,759.02 7,807,670.97
TOTAL LIABILITIES 2,750,838.20 2,881,421.87 3,099,177.44 3,413,660.82 3,835,433.49 4,376,166.17 5,048,753.13 5,867,438.10 6,847,953.02 8,007,670.97

25613995.xls

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