Economic analysis

Annual revenue
calculation
1. Total dry weather
energy=
rate =
total dry weather
revenue=
2.Total wet weather
energy=
rate=
total wet weather
revenue=

90503000 units
7 Rs
633521000 Rs
6599177.083 US$
217112000 units
4 Rs
868448000 Rs
9046333.333 US$
15645510 US$

Total annual revenue =

thus,
Total project cost=
Annual revenue=

51444971 US$
15645510 US$

Annual repair and maintenance cost@ 5% of annual

revenue=
782275.5208 US$
Salvage value =
5144497.1 US$
1) Benefit cost ratio
PW(revenue) =
PW(salvage) =
Total benefit =
PW(R&M)=
Therefore,
Total cost=
Thus,
B/C ratio=
Hence, OK.
2) IRR calculation
Annual worth=
Present worth =
Salvage value =
thus,
PW(i*)= 0
PW(inflow)PW(outflow)= 0
i*=
Hence, OK.

133199055
764696.11
133963751.1
6659957

US$
US$
US$
US$

58104928 US$
2.306 >1

14863235 US$
51444971 US$
5144497.1 US$

>
22% MARR(10%)

3)Calculation of payback period

Net
Cash(US$)

Discounted period(N)

Payback period=

-51444971

14863235

14863235

14863235

4
5

14863235
14863235

PW of net
Cummulative
cash
cash flow
flow(i=10%)
-51444971
-51444971
13512031.82 37932939.18
12283665.3 25649273.89
11166968.44 14482305.45
10151789.5 4330515.955
9228899.54 4898383.586
4.88 years