Investment Summary

Junk

September, 2011

TOTAL

Bare Module Costs
Process Machinery
total plant equipment

$3,210,000
Total Process Machinery: $3,210,000

IPE Specifications
Total Direct Materials and Labor Costs:
Miscellaneous Installation Costs:
Material and Labot G&A Overhead and Contractor Fees:
Contractor Engineering Costs:
Indirect Costs:
Total from IPE:

$0
$0
$0
$0
$0
$0
Total Bare Module Costs:

$3,210,000

Direct Permanent Investment
Cost of Site Preparation:
$160,500
Cost of Service Facilities:
$160,500
Allocated Costs for utility plants and related facilities:$0
Direct Permanent Investment:

$3,531,000

Total Depreciable Capital
Cost of Contigencies and Contractor Fees:

$635,600
Total Depreciable Capital:

$4,167,000

Total Permanent Investment
Cost of Land:
Cost of Royalties:
Cost of Plant Start-Up:

$83,300
$0
$416,700
Total Permanent Investment:

$4,667,000

Working Capital
Inventory
A
hydrogen

a 0 ton
a 0 ton

Accounts Receivable:
Cash Reservces:
Accounts Payable:

$720,000
$271,300
$144,000
Total Working Capital:

TOTAL CAPITAL INVESTMENT

$151,200
$0
Total Inventory: $151,200

$1,286,500
$5,953,500

Variable Cost Summary
Junk

September, 2011

Per ton A

TOTAL

Raw Materials
hydrogen
Total Raw Materials:

$200.00 per ton of A
$200.00 per ton of A

$1,584,000
$1,584,000

$1,584,000

Natural Gas
Total Raw Materials:

$45.00 per ton of A
$45.00 per ton of A

$356,400
$356,400

$1,940,400

$30.00 per ton of A
$48.00 per ton of A
$5.00 per ton of A
$20.00 per ton of A
$12.50 per ton of A
$115.50 per ton of A

$237,600
$380,200
$39,600
$158,400
$99,000
$914,800

$2,855,200

$360.50 per ton of A

$2,855,200

$2,855,200

Utilties

Byproducts
General Expenses
Selling / Transfer:
Direct Research:
Allocated Research:
Administrative Expense:
Management Incentives:
Total Byproducts:
TOTAL

Fixed Cost Summary
Junk

September, 2011

TOTAL

Operations
Direct Wages and Benefits:
Direct Salaries and Benefits:
Operating Supplies and Services:
Technical Assistance to Manufacturing:
Control Laboratory:
Total Operations:

$312,000
$46,800
$18,720
$0
$0
$377,520

$377,520

$187,515
$46,879
$187,515
$9,376
Total Maintenance: $431,285

$808,805

Maintenance
Wages and Benefits:
Salaries and Benefits:
Materials and Services:
Maintenance Overhead:

Operating Overhead
General Plant Overhead:
Mechanical Department Services:
Employee Relations Department:
Business Services:
Total Operating Overhead:

$42,117
$14,237
$34,998
$43,896
$135,248

$944,053

Property Insurance and Taxes
Total Property Insurance and Taxes: $83,340
TOTAL

$1,027,393
$1,027,393

Cash Flow Summary
Junk

September, 2011
Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027

Percentage
of Design
Capacity
0.0%
0.0%
45.0%
67.5%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%

Sales

Capital Costs

Design
Construction
$3,564,000
$5,346,000
$7,128,000
$7,128,000
$7,128,000
$7,128,000
$7,128,000
$7,128,000
$7,128,000
$7,128,000
$7,128,000
$7,128,000
$7,128,000
$7,128,000
$7,128,000

-$4,667,000

Working Capital Variable Costs

Fixed Costs

Depreciation
Allowance

Depletion
Allowance

Taxable Income

Income Tax
Costs

Net Earnings

-$1,286,500

$1,286,500

-$1,284,800
-$1,927,300
-$2,569,700
-$2,569,700
-$2,569,700
-$2,569,700
-$2,569,700
-$2,569,700
-$2,569,700
-$2,569,700
-$2,569,700
-$2,569,700
-$2,569,700
-$2,569,700
-$2,569,700

-$1,027,400
-$1,027,400
-$1,027,400
-$1,027,400
-$1,027,400
-$1,027,400
-$1,027,400
-$1,027,400
-$1,027,400
-$1,027,400
-$1,027,400
-$1,027,400
-$1,027,400
-$1,027,400
-$1,027,400

-$833,400
-$1,333,400
-$800,100
-$480,000
-$480,000
-$240,000

$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

$418,400
$1,057,900
$2,730,800
$3,050,900
$3,050,900
$3,290,900
$3,530,900
$3,530,900
$3,530,900
$3,530,900
$3,530,900
$3,530,900
$3,530,900
$3,530,900
$3,530,900

-$154,800
-$391,400
-$1,010,400
-$1,128,800
-$1,128,800
-$1,217,600
-$1,306,400
-$1,306,400
-$1,306,400
-$1,306,400
-$1,306,400
-$1,306,400
-$1,306,400
-$1,306,400
-$1,306,400

$263,600
$666,500
$1,720,400
$1,922,100
$1,922,100
$2,073,300
$2,224,500
$2,224,500
$2,224,500
$2,224,500
$2,224,500
$2,224,500
$2,224,500
$2,224,500
$2,224,500

Annual Cash
Flow
-$5,953,500
$0
$1,097,000
$1,999,900
$2,520,500
$2,402,100
$2,402,100
$2,313,300
$2,224,500
$2,224,500
$2,224,500
$2,224,500
$2,224,500
$2,224,500
$2,224,500
$2,224,500
$3,511,000

Cumulative Net
Present Value
at 15.0%
-$5,953,500
-$5,953,500
-$5,124,000
-$3,809,000
-$2,367,900
-$1,173,600
-$135,100
$734,600
$1,461,800
$2,094,100
$2,644,000
$3,122,100
$3,537,900
$3,899,400
$4,213,800
$4,487,200
$4,862,400

September, 2011

Profitability Measures
Junk

The Investor's Rate of Return (IRR) for this Project is: 26.25%
The Net Present Value (NPV) at 15% for this Project is: $4,862,400