APPENDICES:

Appendix 1: Board Members of the Fashion Association of Trinidad and

Tobago and Profiles of the Interviewees.

A1.1 Board Members of the F.A.T.T.:

The leaders/ heads who are currently vital in the successful running of operations at the F.A.T.T.
are:

1. Mr. Jason Lindsay (Chairman)

2. Mr. Arnold Best (Vice- Chairman)
3. Ms. Florence Louis-Edouard (Secretary)
4. Ms. Sharleen Chin (Assistant Secretary)
5. Ms. Trista Quash (Treasurer)
6. Ms Darcel de Vlugt (Director)
7. Ms. Lisa See Tai (Director)
8. Ms. Sasha Ann Clement (Director)
9. Ms. Shauna Grant (Director)

A1.2 List of Interviewed Professionals:

1. Dr. Peter Wilson
2. Mr. Arnold Best (Fashion Association of Trinidad and Tobago)
3. Ms. Sandra Car (Caribbean Academy of Fashion Design at the University of Trinidad and
Tobago)
4. Mr. Ashley Christmas (Designers United Stores, Tobago)
5. Mr. Robert Young (Fashion Association of Trinidad and Tobago)
6. Mr. Vitus Evans (Jamaica Agricultural Development Foundation- C.E.O.)
A1.3 Market Feasibility Interview Questions:
My name is Marissa Trotman and I am a final year Mechanical Engineering student at the
University of the West Indies, St. Augustine Campus. My final project is a feasibility study on
the establishment of a fabric manufacturing factory in Trinidad and Tobago. The intended raw
material is West Indian Sea Island Cotton found in Jamaica, Barbados, Antigua, Montserrat and
St. Kitts and Nevis, and the intended finished product is plain white (woven) cotton fabric. This
may be supplemented with other cotton varieties available within the Caribbean region
depending on the quantities of WISIC available for purchase.

The following questions will aid in the completion of various aspects of my project. Thank you
in advance for your responses.

Cotton Fabric Production:

1. What percentage of the fabric used by local/regional designers is cotton as opposed to

other fabric?
2. Is the idea of cotton fabric production in Trinidad and Tobago desirable? How is it
desirable?
3. If it is not desirable, what are your reasons?
4. How would such a fabric manufacturing enterprise benefit local designers?
5. How would it benefit the country?

Demand for fabrics locally and within the Caribbean:

6. What is an approximate value of the quantity/volume of fabric used locally and

regionally?
7. Which type of fabric would you say, is in the greatest demand (most popular) by
local/regional designers?
8. Can you estimate the demand for printed/dyed cotton as opposed to plain white cotton?
9. Can you estimate the average prices currently being paid by local designers to source
similar (plain white cotton) fabric internationally?
Opportunities for eventual expansion of operations:

10. Is there any opportunity for this enterprise to supply foreign designers?
11. If the opportunity exists, can you estimate the volume demand for this fabric outside the
region?
12. Is there potential for eventual expansion of operations to foreign locations?
13. If there were to be a secondary source of cotton fibre other than the West Indian Sea
Island Cotton, what cotton type would it be?
Appendix 2: Equipment Listing and Suppliers.
Table A2.1: Listing of available machines.

Equipme Machine Seller Capacit Power Installation Price

nt Type Name/Model Company y Requirem Space (USD)
ent
Ginning OR-RC-011 Zhengzhou 13kg/hr 4kW 1.55*0.95*1.25 $2,500
Machiner (shary nie- Allraise m (350kg)
y hotmail) Imports and
Exports Co.
Ltd.
OR-RC-016 Zhengzhou 13kg/hr 4kW 1.55*0.85*1.25 $2,300
(shary nie- Allraise m (300kg)
hotmail) Imports and
Exports Co.
Ltd.
MYJ Wuxi D&T 800- 45kW 2.05m * 0.08m $12,000
Sawtooth Import and 1000
Ginning Export Co. kg/hr
Machinery Ltd.

TZ25 (jenny- Zhengzhou 450kg/hr 4kW 1.4*1.0*1.3m $1,700

hotmail) Taizy
Trading
JX-20 (sally- Zhecheng 350kg/hr 4kW 1.4*0.8*1.3m $1,950
hotmail) Hong Xin
Machinery
Factory
JX-40 ( Zhecheng 700kg/hr 5.5kW 1.4*1.2*1.3m $2,550
Hong Xin
 Machinery
Factory

GG-20 Henan 260kg/hr 2.2kW 1.4*0.8*1.3m $1,638

(Barbara Gelgoog
kong) Machinery
Co. Ltd.
GG-25 Henan 350kg/hr 4kW 1.4*1.0*1.3m $1,910
(Barbara Gelgoog
kong) Machinery
Co. Ltd.
GG-40 Henan 520kg/hr 5.5kW 1.4*1.2*1.3m $2,457
(Barbara Gelgoog
kong- Machinery
Hotmail) Co. Ltd.
HY-20A Henan 200-300 4kW 1.52*0.825*1.3 $1,500
Double kg/hr 5
Elephants
Machinery
I/E Co. Ltd.
AZS-G109 Zhengzhou 600- 31.12kW 3.09*1.708*2.2 $21,600
Azeus 850kg/hr 84m
Machinery
Co. Ltd
High HVT1202 Shenzhen 80 220V 2.05m * 0.8m $50,000
Volume High Volume Huisi tests/hr 50/60Hz
Instrume Instrument Instrument
ntation Co., Ltd.
Bale HXBG Fibre Haimen 200-250 - 3m * 2.8m $50,000
Openers/ Production Haoxin kg/hr
Cotton
Lint Line cotton Machinery
Feeders (FEEDER) Co. Ltd.

(FEEDER) Qindao 30-200 5 kW 2*1*1.5m $10,000

FA-008 Tonjia kg/hr (5500kg, 4-
Charles Textile 5kg/cm2
Song- Machinery pressure)
Co.
(OPENER) Zhengzhou 40kg/hr 1.5kW 0.8*0.5*0.75 $6,800
FRK-100 Furui (220V) (130kg)
Mechanical
Equipment
Co. Ltd.
(OPENER) Qingdao 300kg/hr 2.2kW 4.2*1.4*2.02m $10,000
MJY-KS-001 Mingjinyua
n Industry
and Trade
Co. Ltd.
(OPENER) Zhengzhou 200- 2.2kW 1.2*0.9*1.5m $4,000
FR-1200 Furui 300kg/hr (200kg)
Mechanical
Equipment
Co. Ltd.
Carding/ LG3F Zhengzhou 70- 4.25kW 1.8*0.65*0.85 $2,457
Combing Longer 80kg/hr (380V, 50 m (180kg)
Machines Machinery Hz)
Co. Ltd.
LG3F-1 Zhengzhou 150- 4.75kW 2.2*0.55*0.11 $4,313
Longer 180kg/hr m (460kg)
Machinery
Co. Ltd.
LG3F-2 Zhengzhou 260- 5.75kW 2.2*1.3*1.08m $4,641
Longer 300kg/hr (500kg)
Machinery
Co. Ltd.
FA 231C Qingdao 50kg/hr 5kW 3.442m*1.916 $12,796
Yongjia m
Textile
Machinery
Manufactur
e Co. Ltd.
JXSM-360 Henan 50- 4.75kW 2m*0.69m*0.9 $2,730
Jingxin 80kg/hr 2m (440kg)
Machinery
Co. Ltd.
JXSM-560 Henan 100- 4.75kW 2.2*0.92*0.92 $3,590
Jingxin 180kg/hr m (480kg)
Machinery
Co. Ltd.
YJ-FA231 Qingdao 50kg/hr 6.6kW 3.442*1.916m $2,9508
Yongjia .20
Textile
Machine
Manufactur
e Co. Ltd.
YJ-FA1171 Qingdao 20- 1.68kW 1.23*0.45*2.43 $7,278.
Yongjia 80kg/hr m 69
Textile
Machine
Manufactur
e Co. Ltd.
 FA 186G Qingdao 20kg/hr 18.25kW 3.809*2.092m $12,300
Sliver Huarui
Carding Textile
Machine Machinery
Manufactur
e Co. Ltd.
FB 1233 Zhangjiaga 80kg/hr 9.07kW 3.807*1.980m $48,500
(Steven Liu) ng Textile (280m/m (380V) (7500kg)
Machinery in)
Co. Ltd.
A186G OBT 35kg/hr 4.46kW 3.809*2.092m $14,375
Machinery (500-600Pa air with
pressure, coiler,
$13,608
without
QY-2 (Arthur Qinyuan 50- 2.2kW 2.5*3.0*1.4m $6,048
Miao) Machinery 80kg/hr 380V, (1300kg)
Factory 0.75kW
380V
FA-231 Qindao 80kg/hr 8.99kW 3.807*1.980m $10,000
(Charles Tonjia (total
Song) Textile installed),
Machinery 5.5kW
Co. (motor for
main
drive)

Coiler Hubei 12- 10kW - -

Machines WQ-L6 (Mr. Wenqi 15kg/hr (380V)
(produces Li) Industry
sliver)
 and Trade (1.2-
Co. Ltd. 6g/m of
sliver)

MJY-ZZM- Qingdao 65- 17.75kW, 4.5*3.5*1.5m $12,000

001 Mingjinyua 80kg/hr 380V,
n Industry 50Hz
and Trade (3phase)
and Co.
Ltd.
FA266- for Qingdao 93kg/hr 10.19kW 3.2*1.975m $25,000
ring Tonglijia (240m/m (11000kg)
spinning(App Mechanical in) 3.5-
le Xu) Science and 6.5g/m
Technology of sliver
Co. Ltd.
Drawing FA306A Shandong 600 4.0kW 2.79*0.95*1.64 $15,000
Frames (Maggie sun) Tongda m/min 5m
Machinery 2200kg
Co. Ltd.

FA316A-in Qingdao 600 4.0kW 2.27*0.95*1.64 $29,200

email Runxin m/min (380V/50 5m
Industry Hz) 2200kg
Co. Ltd.
 LGHFX-A2 Zhengzhou 12m/min 0.6kW 1.2*0.8*1.2m $14,000
Longer (drafting (220/380 (400kg)
Machinery roller V)
Co. Ltd dia=35m
m)
CLJ Qingdao 178- 1kW 2.02*0.8*1.795
Tonglijia 600m/mi m
Mechanical n (2150kg)
Science and
Technology
Co.
FA310 Qingdao 100m/mi 0.75kW 2.3*0.8*1.995 $10,000
(Linda Bo-) Handsome n m (2200kg)
Import and
Export Co.
Ltd
HY492E (zhi Wuxi 3000m/ 22.5kW - $65,000
hong chen- Hongyuan min
Electromec
hanical
Technology
company
ltd.)
Roving FA471 Shandong 1200rpm 18kW 13.57*5.86*1.9 $45600
Frames (Maggie sun) Tongda m
(produces Textile
roving)- Machinery
rotor or Co. Ltd.
air-jet HY490 (Zhi Wuxi 1200rpm 18kW 13.57*5.86*1.9 $65,000
spinners Hong Chen)- Hongyuan m
eliminate Electromec
need for for ring hanical
this spinning Technology
company
ltd.)
HY491A Jiangsu 1200rpm 22.5kW 12.795*13.57* $300,00
(sutex03) Textile 13.958m 0
Industry
(Group)
Import and
Export Co.
FB473 Zhangjiaga 60- 11kW 9.548*4.375* $110,00
(Steven Liu) ng Textile 180m/mi 2.375m 0
Machinery n (2930 (7000kg)
Co. Ltd. rpm)

GGHFX-A3 Henan 600rpm 1.6kW 1*0.8*1.6m $22050

(Helen Xu) Gelgoog (220/3*38
Commercia 0V AC
l and 50Hz)
Trading Co.
Ltd.
FA 502 (wei Shandong 8000- 35.2kW - $250,00
zhao) Tongda 16000rp 0
Textile m
Machinery
Co. Ltd.
Spinning (RING) Shandong 15000- $34,000
Machines FA506 Tongda 22000rp 220W 2.38*0.7*2.3m
(Maggie sun) Textile m
Machinery
Co. Ltd.
(RING) Shandong 3310- 11kW- 12.6*1.3*1.8m $30,000
RMRT100- Rope Net 6760rpm 380V 3- (6500kg)
144 (Amanda Machinery phase,
Sun) Co. Ltd. 50Hz

(RING) Shandong 1800- 18.5kW- 7.8*1.5*1.8m $27,000

RMRT- Rope Net 2800rpm 380V 3 (6500kg)
813/814 ( Machinery phase
(Cassie Co. Ltd. 50Hz
Wang)
ring

(RING) Machco 10,000- 19.6kW 18.41*1*2.23m $20,600

FA503 (Mian Tex. 17,000 (6t)
Shahid rpm
Mehmood)
(RING) Taian 1800- 15kW 7.07*1.58*2.27 $30,000
HDRT-722 Haidai 2800rpm m
(Nancy Li- Rope (ring (6600kg)
Machinery dia=204
Ltd. mm,
spindle
dia=175
mm)
(ROTOR) Shandong 170m/mi 98kW - $64,000
RS30 Tongda n (5000- (21t)
(Maggie Sun) Textile (45000- 7000Pa
Machinery 100000r spinning
Co. Ltd. pm) pressure)
50mm
rotor dia.
(ROTOR) Qingdao
TJ-008 Tongjia
(Charles Textile
Song) Machinery
Co. Limited
(ROTOR) Hangzhou 12000- $13628
FA506 Toworld 20000rp
Import and m
Export Co. (38mm
Ltd. rotor
dia.)
(ROTOR) Shandong 31000- 72kW - $62,990
TQF268 (wei Tongda 45000rp (5000-
zhao) Textile m 7000Pa
Machinery (66mm spinning
Co. Ltd. rotor pressure)
dia.)
(ROTOR) Qingdao 800rpm 2.8kW 3.7*1.75*1.285 $10,000
HCH-968T Haochunhu m (1.8 t)
(Danny Shen) i Metal
Products
Co.
(AIR-JET) Exporagent 400 22kW 21.37*2.62m $46,000
Murata ur m/min (380V) (1500kg)
MVS851 Voellinger
(birgit
voellinger)
(AIR-JET) Qingdao - 3.0kW 2.5*2.0*1.5m $45,000
JA21 High-Class (3 t)
(Nancy Service
Duan-
 Import and
Export Co.

(AIR-JET) Shandong 400- 1.5-2.8kW 1*3*2m $30,000

TDA-710 Tongda 500rpm (1.8t)
Machinery
Co. Ltd.
(AIR-JET) Qingdao - 3.7kW - $45,000
JA21-190 High-Class Reed (4t)
Plain Service width
Shedding Import and 190cm
(Nancy Export Co.
Duan-
Looms CTOP-A709 Qingdao 350- 3.5kW 3.8*3.2*2.6m $25,000
(Grant Clientop 450rpm (3.2 t)
Zhang) Machinery (4.2m/mi
Co. Ltd.- n)
JLH-750 (air- Qingdao 400- 2.2kW 3.2*1.8*1.3m $85,000
jet loom) Jinlihua 500rpm (2200kg)
Textile
Machinery
Co. Ltd.
GA798 Shandong 195- 2.0kW 4.5*2.5*2.6m $75,000
(rapier loom) HICAS 230rpm
Machinery
Group Co.
Ltd.
WSD815A Jiangsu 600 24kW - $45,000
(Yuki Bian- Wanshida m/min (7000kg)
Hydraulic
 Machinery
Co.
Warping YBGA 698 Jiangyin 150m/mi 25kW - $45,000
Machine Warping- City n (7500kg)
Sizing Youbang
combination Textile
(mr boswell Machinery
bu- Co. Ltd.
COW 400AP Ningbo 390 1.5kW - $5,000
(sam su- Jiangdong m/min
Credit (350
Ocean rpm)
Machinery
and
Electronic
Co.
HERMES Yangzhou 4m/min 19.15kW 5.6*2.4*1.8m $25,570
Warping Hermes .23
Sizing Electromec
Combination( hanical Co.
Dana wang – Ltd
ASGA626 Jiangsu 100-
(tiny hu-.) Huawei 1000
New m/min
Energy
Technology
Co. Ltd.
YTC-W 401 Xiamen 400m/mi 1.5kW 1.6*1.0*1.0m $7,200
Yitai n (500kg)
Industrial
Co. Ltd.
 ASGA347 Wuxi 80m/min 40kW 29.2*4.5*3. $750,00
(alice fan- Kangda (25t) 0
Printing
and Dyeing
Equipment
Co. ltd
Sizing GA308-240 High-Tech 100m/mi 64kW 26.1*4.45*4.2 $280,00
Machine Heavy n m 0
Industry
Co. Ltd.
SD200 Hangzhou 3- 3kW 6.0*2.6*1.9m $50,500
Saishun 8m/min
Mechanical
and
Electrical
Equipment
Co. Ltd.
De-sizing LMH093B- Wuxi 10- 65kW 69.5*3.0*4.8m
Machine 220 (De- Kangda 70m/min
sizing, Printing
Scouring, and Dyeing
Bleaching Equipment
Combination) Co. Ltd.
SMA7005 Shaoyang 100m/mi
(De-sizing Textile n
and Machinery
Bleaching Co. Ltd.
Range)
KD-180 Wuxi 3kW 6.0*2.6*2.0m
Kangda
Printing
 and Dyeing
Equipment
Co. Ltd.
SD200 Hangzhou 3kW 2.6*0.9*1.3
Saishun
Mechanical
and
Electrical
Equipment
Co. Ltd.

Table A2.2: Machines Chosen for consideration in the Manufacturing Process Selection.

Equipme Machine Seller Capacity Power Installation Price

nt Type Name/M Company (Processing Requireme Space (USD)
odel Speed) nt
Bale FRK-100 Zhengzhou 40kg/hr 1.5kW 0.8*0.5*0.75 $6,800
Opener Furui (220V) (130kg,
Mechanical 0.7MPa
Equipment pressure)
Co. Ltd.
Cotton FA-008 Qindao 30-200 5 kW 2*1*1.5m $10,000
Lint Tonjia kg/hr (5500kg, 4-
Feeder Textile 77-513 5kg/cm2
m/min pressure,
 Machinery (6.5g/m 0.01m3/hr air
Co. quantitative consumption)
sliver)
Carding YJ- Qingdao 20-80kg/hr 1.68kW 1.23*0.45*2.4 $7,278.
Frame FA1171 Yongjia 51-205 3m 69
Textile m/min (350kg)
Machine (6.5g/m
Manufactur quantitative
e Co. Ltd. sliver)
Coiler MJY- Qingdao 65-80kg/hr 17.75kW, 4.5*3.5*1.5m $12,000
Machine ZZM-001 Mingjinyua 167-205 380V, (1450kg)
(produce n Industry m/min 50Hz
s Sliver) and Trade (6.5g/m (3phase)
and Co. Ltd. quantitative
sliver)
Drawing FA306A Shandong 600 m/min 4.0kW 2.79*0.95*1.6 $15,000
Frame (Maggie Tongda 45m
sun) Machinery 2200kg
Co. Ltd.
Roving GGHFX- Henan 600rpm 1.6kW 1*0.8*1.6m $22,050
Frame A3 Gelgoog ≈53m/min (220/3*380 (450kg)
(Helen Commercial (drafting V AC
Xu) and Trading roller D= 50Hz)
Co. Ltd. 28mm)
Spinning HDRT- Taian 1800-2800 15kW 7.07*1.58*2.2 $30,000
Frame 722 Haidai rpm 7m
(Ring) Rope 990-1540 (6600kg)
Machinery m/min
Ltd. (spindle
D=175mm)
 Spinning HCH- Qingdao 800rpm 2.8kW 3.7*1.75*1.28 $10,000
Frame 968T Haochunhui 5m (1829kg)
(Rotor) Metal (reed
Products width=230cm)
Co.
Spinning (AIR- Shandong 400- 1.5-2.8kW 1*3*2m $30,000
Frame JET) Tongda 500rpm (1829kg)
(Air-Jet) TDA-710 Machinery
Co. Ltd.
Warping YTC-W Xiamen 400m/min 1.5kW 1.6*1.0*1.0m $7,200
Machine 401 Yitai (beam (500kg)
Industrial dia=400mm
Co. Ltd. )
Loom GA798 Shandong 195-230 2.0kW 4.5*2.5*2.6m $75,000
(rapier HICAS rpm (2000kg)
loom) Machinery 270-318
Group Co. m/min
Ltd. (roller
dia.=440m
m)

Table A2.3: Machines needed for Final Manufacturing Process.

Equipme Machine Seller Capacity Power Installation Quantit Price

nt Type Name/M Company (Processing Requireme Space y (USD)
odel Speed) nt (L*W*H)m3 Needed
 (Weight,
Pressure)
Bale FRK-100 Zhengzhou 40kg/hr 1.5kW 0.8*0.5*0.75 4 $6,800
Opener Furui (220V) (130kg, (x4)
Mechanical 0.7MPa
Equipment pressure)
Co. Ltd
(Qingdao
Port).
Cotton FA-008 Qingdao 30-200 5 kW 2*1*1.5m 1 $10,000
Lint Tonjia kg/hr (5500kg, 4-
Feeder Textile 77-513 5kg/cm2
Machinery m/min pressure,
Co. (6.5g/m 0.01m3/hr air
(Qingdao quantitative consumption)
Port) sliver)
Carding YJ- Qingdao 20-80kg/hr 1.68kW 1.23*0.45*2.4 2 $7,278.
Frame FA1171 Yongjia 51-205 3m 69
Textile m/min (350kg) (x2)
Machine (6.5g/m
Manufactur quantitative
e Co. Ltd. sliver)
(Qingdao
Port)
Coiler MJY- Qingdao 80kg/hr 17.75kW, 4.5*3.5*1.5m 2 $12,000
Machine ZZM-001 Mingjinyua 205m/min 380V, (1450kg) (x2)
(produce n Industry (6.5g/m 50Hz
s Sliver) and Trade quantitative (3phase)
and Co. Ltd. sliver)
(Qingdao
Port)
Drawing FA306A Shandong 600 m/min 4.0kW 2.79*0.95*1.6 1 $15,000
Frame (Maggie Tongda 45m
sun) Machinery (2200kg)
Co. Ltd.
(Qingdao
Port)
Roving GGHFX- Henan 600rpm 1.6kW 1*0.8*1.6m 4 $22,050
Frame A3 Gelgoog 53m/min (220/3*380 (450kg) (x4)
Commercial (drafting V AC
and Trading roller D= 50Hz)
Co. Ltd. 28mm)
(Qingdao
Port)
Spinning HDRT- Taian 1800-2800 15kW 7.07*1.58*2.2 1 $30,000
Frame 722 Haidai rpm 7m
(Ring) Rope 990-1540 (6600kg)
Machinery m/min
Ltd. (spindle
(Qingdao D=175mm)
port)
Warping YTC-W Xiamen 400m/min 1.5kW 1.6*1.0*1.0m 2 $7,200
Machine 401 Yitai (beam (500kg) (x2)
Industrial dia=400mm
Co. Ltd. )
(Port of
Xiamen)
Loom GA798 Shandong 195-230 2.0kW 4.5*2.5*2.6m 1 $75,000
(rapier HICAS rpm (2000kg)
loom) Machinery 270-318
Group Co. m/min
Ltd.
(Qingdao (roller
Port) dia.=440m
m)
Total Equipment Cost $298,35
7.38
Appendix 3: Raw Material Quantities and Costs
It is estimated that 1lb of cotton lint produces 1 long sleeved shirt. It is also estimated that 2
metres of cotton fabric of width 60” produces 1 shirt. The nameplate capacity of the Loom as
shown in Table A2.3 is approximately 300m/min.

1 shirt= 1lb= 2m

2m= 1lb

300m= 150lbs

Therefore, the factory would process 150lbs of cotton every minute. The factory’s working hours
are estimated at 8hours/day, 22days/month, and 12 months/year.

150lbs/min= (150*60*8*22*12) lbs/year= 19,008,000lbs/year

At 100% nameplate capacity, the factory can process approximately 19 million pounds of cotton
lint per year. However, to account for the six major losses of Overall Equipment Effectiveness
programs (breakdowns, setups and adjustments, small stops, reduced speed, start-up rejects and
production rejects), the maximum output is set at 60% nameplate capacity. The overall aim of
the raw material adjustments throughout the first ten years of operation is to continually increase
the supply of WISIC as operations expand in Jamaica.

Table A3.1: Layout of the Quantities of Lint required from Suppliers.

Year % Operating Quantity of Jamaica Haiti India

Capacity Cotton Needed (WISIC) (No. of (No. of
(lbs) (No. of Bales) Bales)
(1bale=400lbs) bales)
1 20 3,801,600 750 2,376 6,378
(9,504 bales)
2 30 5,702,400 1000 3,564 9,692
(14,256 bales)
 3 40 7,603,200 1500 4,752 12,756
(19,008 bales)
4 50 9,504,000 2000 5,940 15,820
(23,760 bales)
5 60 11,404,800 2500 7,128 18,884
(28,512 bales)
6 60 11,404,800 3,000 8,000 17,512
(28,512 bales)
7 60 11,404,800 3,500 8,000 17,012
(28,512 bales)
8 60 11,404,800 4,000 8,000 16,512
(28,512 bales)
9 60 11,404,800 4,500 8,000 16,012
(28,512 bales)
10 60 11,404,800 5,000 8,000 15,512
(28,512 bales)

Table A3.2: Cost of Raw Materials for the first ten years of operation.

Year Jamaica Cost- Haiti Cost- Haiti India Cost- Total Cost
(WISIC) Jamaica (No. of (US$440 (No. of Gujarat, by Year
(No. of (US$5200 Bales) per bale) Bales) India (USD)
bales) per bale) (US$400
per bale)
1 750 $3,900,000 2,376 $1,045,440 6,378 $2,551,200 $7,496,640
2 1000 $5,200,000 3,564 $1,568,160 9,692 $3,876,800 $10,644,960
3 1500 $7,800,000 4,752 $2,090,880 12,756 $5,102,400 $14,993,280
4 2000 $10,400,000 5,940 $2,613,600 15,820 $6,328,000 $19,341,600
5 2500 $13,000,000 7,128 $3,136,320 18,884 $7,553,600 $23,689,920
6 3,000 $15,600,000 8,000 $3,520,000 17,512 $7,004,800 $26,124,800
7 3,500 $18,200,000 8,000 $3,520,000 17,012 $6,804,800 $28,524,800
8 4,000 $20,800,000 8,000 $3,520,000 16,512 $6,604,800 $30,924,800
9 4,500 $23,400,000 8,000 $3,520,000 16,012 $6,404,800 $33,324,800
10 5,000 $26,000,000 8,000 $3,520,000 15,512 $6,204,800 $35,724,800
Appendix 4: Economic Analysis:
A4.1: Costs and Income considered for the Net Cash Flows:
Note: The Foreign Exchange rate as of February 2015 for the US dollar is TT$6.23/US$.

1. Total Monthly and Yearly Labour Costs:

Total monthly labour costs= [(no. of line workers) (hourly rate) (no. of working hours per
day) (no. of working days per month)] + [(no. of drivers) (hourly rate) (no. of working hours
per day) (no. of working days per month)] + [(no. of maintenance personnel) (hourly rate)
(no. of hours worked per month)] + [Monthly supervisor salary]

 Assumption 1:
- Line workers work 8 hours per day, 5 days per week (22 work days per month).
- Drivers work 8 hours per day, 8 delivery days per month.
- Mechanics work 8 hours per day for daily maintenance duties.

 Assumption 2:
- Line workers are paid TTD $35.00 per hour.
- Drivers are paid TTD $40.00 per hour.
- Mechanics are paid TTD $40.00 per hour.
- A supervisor is paid TTD $9,000.00 per month.

Therefore, a line worker would be paid ($35.00/hour)*(8hours/day)*(22days/month) = TTD

$6,160.00/month.

A driver would be paid ($40.00/hour)*(8hours/day)*(8days/month) = TTD $2,560.00/month.

A mechanic would be paid ($40.00/hour)*(8hours/day)*(22days/month) = TTD

$7,040.00/month.

 Assumption 3:
 - One line worker is needed for each machine, for a total of 18 line workers.
- Three delivery vehicles will be utilised, therefore there are 3 drivers.
- A team of 5 mechanics will perform preventative maintenance measures twice a
month, attend to breakdowns or non-routine maintenance and work as additional
operators when maintenance operations are not being performed.
- One supervisor will be employed at the plant.

Therefore, Total line worker labour costs= ($6,160.00/month)*(18 line workers) = TTD
$110,880.00/month.

Total Driver Costs= ($2,560.0/month)*(3 drivers) = TTD $7,680.00/month

Total maintenance labour costs= ($7,040.00/month)*(5 mechanics) = TTD $35,200.00/month.

Total Monthly Labour Costs= $110,880.00 + $7,680.00 + $35,200.00 + $9,000.00= TTD

$162,760.00/month or USD $26,125.20/month.

Total Yearly Labour Costs= TTD $1,953,120.00 or USD $313,502.41.

2. Monthly and Yearly Utility Costs:

 Assumption 4:
- The facility will be charged as a Commercial Customer by the Trinidad and Tobago
Electricity Commission. ($0.415/kWh + $12.50/month service charge + VAT)
- The facility will be charged as a Commercial, Unmetered User (Account Class: C3)
by the Water and Sewerage Authority. ($474.00/month water charge + $237/month
sewer charge + VAT)

Monthly Power costs= [(no. of operating hours per day) (no. of operating days per month) (cost
of electricity per kWh) (equipment kW per hour) +monthly customer service charge] + VAT

Total Equipment kW usage per hour = (1.5 + 5.0 + 1.68 + 17.75 + 4.0 + (1.6*2) + 15.0 + 1.5 +
2.0) = 51.63kW/hour

Total Monthly Electricity Cost= (8hours/day)*(22days/month)*($0.415/kWh)*(51.63kW/hour)

+$12.50 +VAT
Total Monthly Electricity Cost= $3783.56 + $(0.15)*(3783.56) = TTD $4,351.09 or USD
$698.41.

Total Monthly Water Cost= $474.00 +$237.00 + $(0.15)*(474 + 237) = TTD $817.65 or USD
$131.24.

 Assumption 5:
- Compressed air deliveries of 9 tanks per delivery would be made twice a month.

Total Monthly Compressed Air Cost= (Cost of 18 tanks + VAT) + (Cost of 2 deliveries)

Total Monthly Compressed Air Cost= $(1.15)*(9)*(82.50)*(2) + $(100)*(2)

Total Monthly Compressed Air Cost= TTD $1,907.75 or USD $306.22

 Assumption 6:
- Fuel for one delivery day costs approximately TTD $200.00 per vehicle.

Total Monthly Fuel Costs= ($200)*(8 delivery days)*(3 vans) = TTD $4,800.00 or USD
$770.47.

Total Monthly Utilities Expenses= USD ($698.41 + $131.24 + $306.22 + $770.47) = USD
$1,906.34.

Total Yearly Utilities Expenses= USD $22,876.08.

3. Monthly and Yearly Facilities Expenses:
- Proposed Facility: 12,000ft2 Warehouse located at 23 Bejucal Road, Cunupia.
- Property Listing Number: CM392800.
- Lease: 3 year lease (less 1 day), 1 month’s rent paid in advance. Desire to renew lease
requires notice 6 months prior to the end of the lease period.
- Rental Fee: TTD $60,000/month ($5/ft2)

Total Yearly Rental (Year 1) = ($60,000)*(11) = TTD $660,000.00 or USD $105,939.00.

Total Yearly Rental (Years 2-10) = ($60,000)*(12) = TTD $720,000 or USD $115,569.82.

4. Advertising and Marketing, Insurance, Repairs and Maintenance, Miscellaneous:

- Advertising and Marketing will be assigned a budget of 10% of yearly sales revenues.
- Insurance will be assigned a budget of 10% of yearly sales revenues.
- Repairs and Maintenance will be assigned a budget of 5% of yearly sales revenues.
- Corporation Tax will be taken at 25% of the yearly sales revenues.
- Purchase of Property and Equipment is assigned 15% of sales revenues.
- Research and Development is given a budget of 10% of sales revenues.
- A budget of 8% of sales revenues is assigned to packaging and special finishes.

5. Shipping:
Shipping quotes were provided by Ramps Logistics Ltd. Local handling charges are standard
and include Terminal Handling Charge (THC), Local Administrative Charge (LAC) and
Handling Charge. Ocean Freight varies by location of origin.
- THC= USD $229.00
- LAC= USD $46.00
- Handling= USD $15.00

Total Equipment Shipment Cost= $4,000 + $229 + $46 + $15= USD $4,920.00.
Yearly Raw Material Shipment Cost (India) = $3,900 + $229 + $46 + $15= USD $4,820.00/
40ft container (per 200 bales).

Yearly Raw Material Shipment Cost (Haiti) = $410 + $229 + $46 + $15= USD $700.00/40ft
container.

Yearly Raw Material Shipment Cost (Jamaica) = $550.00 + $229 + $46 + $15= USD
$840.00/40ft container.

Table A4.1: Annual Raw Material Shipment Costs.

Year Jamaica Shipping Haiti Shipping India Shipping Total Cost

(WISIC) Cost- (No. of Cost- (No. of Cost- by Year
(No. of Jamaica container Haiti containers) Gujarat, (USD)
containe (US$840/ s) (US$700 India
rs) container) / (US$4820/
containe container)
r)
1 4 3,360 12 8,400 32 154,240 166,000
2 5 4,200 18 12,600 49 246,180 262,980
3 8 6,720 24 16,800 64 308,480 332,000
4 10 8,400 30 21,000 80 385,600 415,000
5 13 10,920 36 25,200 95 457,900 494,020
6 15 12,600 40 28,000 88 424,160 464,760
7 18 15,120 40 28,000 86 414,520 457,640
8 20 16,800 40 28,000 83 400,060 447,380
9 23 19,320 40 28,000 81 390,420 437,740
10 25 21,000 40 28,000 78 375,960 424,960
 6. Sales Revenues:
- According to JADF C.E.O. Vitus Evans, one metre of finished cotton fabric made from
WISIC costs between US $28.00 and US $45.00. An average of this range will be used,
for a price of US $36.50/m of WISIC fabric.
- A review of the interview responses and an online search indicate that regular cotton
fabric costs approximately US $4.00/m. This price will be used for the fabric produced
from cotton obtained from India and Haiti.
- The conversion of 1lb=2m of cotton still applies.

Table A4.2: Projected Sales Revenues.

Year Metres of Jamaica Revenue- Haiti Revenue- India Revenue- Total

Fabric (WISIC) WISIC (m) Haitian (m) Indian Yearly
Produced (m) (USD) Cotton Cotton Revenue
(m) (USD) (USD) (USD)
1 7,603,200 600,000 21,900,000 1,900,800 7,603,200 5,102,400 20,409,600 49,912,800
2 11,404,800 800,000 29,200,000 2,851,200 11,404,800 7,753,600 31,014,400 71,619,200
3 15,206,400 1,200,000 43,800,000 3,801,600 15,206,400 10,204,800 40,819,200 99,825,600
4 19,008,000 1,600,000 58,400,000 4,752,000 19,008,000 12,656,000 50,624,000 128,032,000
5 22,809,600 2,000,000 73,000,000 5,702,400 22,809,600 15,107,200 60,428,800 156,238,400
6 22,809,600 2,400,000 87,600,000 6,400,000 25,600,000 14,009,600 56,038,400 169,238,400
7 22,809,600 2,800,000 102,200,000 6,400,000 25,600,000 13,609,600 54,438,400 182,238,400
8 22,809,600 3,200,000 116,800,000 6,400,000 25,600,000 13,209,600 52,838,400 195,238,400
9 22,809,600 3,600,000 131,140,000 6,400,000 25,600,000 12,809,600 51,238,400 207,978,400
10 22,809,600 4,000,000 146,000,000 6,400,000 25,600,000 12,409,600 49,638,400 221,238,400

7. Initial Investment Required:

- Total Equipment Cost= USD $298,257.38
- Equipment Shipment Cost= USD $4,290.00
 - Equipment Installation Cost- assumed to be taken from the Year 1 Maintenance Budget.
- First Month’s Rent= TTD $60,000= USD $9,630.82
- Half of Year 1 Raw Materials= USD $3,748,320.00
- Half of Year 1 Raw Materials Shipment= (2 containers)*($840.00/container) + (6
containers)*($700.00/container) + (16 containers)*($4,820/container) = USD $83,000.00.
- Three Toyota Hiace Panel Vans at approximately TTD $150,000.00 each= USD
$72,231.14.
- Four used 40ft Cargo Containers at USD $2,500.00 each for additional storage purposes=
USD $10,000.00.

Total Initial Investment Required= $(298,257.38 + 4,290.00 + 9,630.82 + 3,748,320.00 +

83,000.00 + $72,231.14 + 10,000.00) = USD $4,225,729.34.
A4.2: Optimistic and Pessimistic Cash Flows:

Table A4.3: Net Cash Flow- Optimistic.

Yea Year Year Year Year Year Year Year Year Year Year
r0 1 2 3 4 5 6 7 8 9 10

Operating
Activities
Cash $499 $716 $998 $128 $156 $169 $182 $195 $207 $221
Receipts 12,8 19,2 25,6 032, 238, 238, 238, 238, 978, 238,
from Sales 00.0 00.0 00.0 000. 400. 400. 400. 400. 400. 400.
0 0 0 00 00 00 00 00 00 00
Raw ($37 ($10 ($14 ($19 ($23 ($26 ($28 ($30 ($33 ($35
Material 48,3 644, 993, 341, 689, 124, 524, 924, 324, 724,
Purchases 20.0 960. 280. 600. 920. 800. 800. 800. 800. 800.
0) 00) 00) 00) 00) 00) 00) 00) 00) 00)
Raw ($83, ($26 ($33 ($41 ($49 ($46 ($45 ($44 ($43 ($42
Material 000. 2,98 2,00 5,00 4,02 4,76 7,64 7,38 7,74 4,96
Shipping 00) 0.00) 0.00) 0.00) 0.00) 0.00) 0.00) 0.00) 0.00) 0.00)
Wages and ($31 ($31 ($31 ($31 ($31 ($31 ($31 ($31 ($31 ($31
Salaries 3,50 3,50 3,50 3,50 3,50 3,50 3,50 3,50 3,50 3,50
2.41) 2.41) 2.41) 2.41) 2.41) 2.41) 2.41) 2.41) 2.41) 2.41)
Rent ($10 ($11 ($11 ($11 ($11 ($11 ($11 ($11 ($11 ($11
5,93 5,56 5,56 5,56 5,56 5,56 5,56 5,56 5,56 5,56
9.00) 9.82) 9.82) 9.82) 9.82) 9.82) 9.82) 9.82) 9.82) 9.82)
Utilities ($22, ($22, ($22, ($22, ($22, ($22, ($22, ($22, ($22, ($22,
876. 876. 876. 876. 876. 876. 876. 876. 876. 876.
08) 08) 08) 08) 08) 08) 08) 08) 08) 08)
Repairs and ($24 ($35 ($49 ($64 ($78 ($84 ($91 ($97 ($10 ($11
Maintenanc 95,6 80,9 91,2 01,6 11,9 61,9 11,9 61,9 398, 061,
e 40.0 60.0 80.0 00.0 20.0 20.0 20.0 20.0 920. 920.
0) 0) 0) 0) 0) 0) 0) 0) 00) 00)
Insurance ($49 ($71 ($99 ($12 ($15 ($16 ($18 ($19 ($20 ($22
91,2 61,9 82,5 803, 623, 923, 223, 523, 797, 123,
80.0 20.0 60.0 200. 840. 840. 840. 840. 840. 840.
0) 0) 0) 00) 00) 00) 00) 00) 00) 00)
Advertising ($49 ($71 ($99 ($12 ($15 ($16 ($18 ($19 ($20 ($22
and 91,2 61,9 82,5 803, 623, 923, 223, 523, 797, 123,
Marketing 80.0 20.0 60.0 200. 840. 840. 840. 840. 840. 840.
0) 0) 0) 00) 00) 00) 00) 00) 00) 00)
Special ($39 ($57 ($79 ($10 ($12 ($13 ($14 ($15 ($16 ($17
Finishes 93,0 29,5 86,0 242, 499, 539, 579, 619, 638, 699,
and 24.0 36.0 48.0 560. 072. 072. 072. 072. 272. 072.
Packaging 0) 0) 0) 00) 00) 00) 00) 00) 00) 00)
Net Cash $291 $366 $511 $655 $800 $863 $926 $989 $105 $111
Flow from 67,9 24,9 05,9 72,8 43,8 48,2 65,3 85,5 131, 628,
Operating 38.5 75.6 23.6 91.6 39.6 19.6 39.6 99.6 039. 019.
Activities 1 9 9 9 9 9 9 9 69 69

Investing
Activities
Purchase of ($42 ($74 ($10 ($14 ($19 ($23 ($25 ($27 ($29 ($31 ($33
Property 25,7 86,9 742, 973, 204, 435, 385, 335, 285, 196, 185,
and 29.3 20.0 880. 840. 800. 760. 760. 760. 760. 760. 760.
Equipment 4) 0) 00) 00) 00) 00) 00) 00) 00) 00) 00)
Loans $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
0 0 0 0 0 0 0 0 0 0
Purchase of $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Investment 0 0 0 0 0 0 0 0 0 0
Securities
Research ($49 ($71 ($99 ($12 ($15 ($16 ($18 ($19 ($20 ($22
and 91,2 61,9 82,5 803, 623, 923, 223, 523, 797, 123,
Developme 80.0 20.0 60.0 200. 840. 840. 840. 840. 840. 840.
nt 0) 0) 0) 00) 00) 00) 00) 00) 00) 00)
Net Cash ($12 ($17 ($24 ($32 ($39 ($42 ($45 ($48 ($51 ($55
Flow from 478, 904, 956, 008, 059, 309, 559, 809, 994, 309,
Investing 200. 800. 400. 000. 600. 600. 600. 600. 600. 600.
Activities 00) 00) 00) 00) 00) 00) 00) 00) 00) 00)

Financing
Activities
Repurchase $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
of Stock 0 0 0 0 0 0 0 0 0 0
(Treasury
Stock)
Repayment $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
of Loans 0 0 0 0 0 0 0 0 0 0
Dividends $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
0 0 0 0 0 0 0 0 0 0
Corporation ($12 ($17 ($24 ($32 ($39 ($42 ($45 ($48 ($51 ($55
Tax 478, 904, 956, 008, 059, 309, 559, 809, 994, 309,
200. 800. 400. 000. 600. 600. 600. 600. 600. 600.
00) 00) 00) 00) 00) 00) 00) 00) 00) 00)
Net Cash ($12 ($17 ($24 ($32 ($39 ($42 ($45 ($48 ($51 ($55
Flow from 478, 904, 956, 008, 059, 309, 559, 809, 994, 309,
Investing 200. 800. 400. 000. 600. 600. 600. 600. 600. 600.
Activities 00) 00) 00) 00) 00) 00) 00) 00) 00) 00)
 Net Yearly ($42 $421 $815 $119 $155 $192 $172 $154 $136 $114 $100
Cash Flow 25,7 1,53 ,375. 3,12 6,89 4,63 9,01 6,13 6,39 1,83 8,81
29.3 8.51 69 3.69 1.69 9.69 9.69 9.69 9.69 9.69 9.69
4)

Sum of $10
Cash Flow 937,
Present 406.
Values 23
NPV $67
11,6
76.8
9
IRR 53%

Table A4.4: Net Cash Flow-Pessimistic.

Yea Yea Year Year Year Year Year Year Year Year Year
r0 r1 2 3 4 5 6 7 8 9 10

Operating
Activities
Cash $29 $429 $598 $768 $937 $101 $109 $117 $124 $132
Receipts 947, 71,5 95,3 19,2 43,0 543, 343, 143, 787, 743,
from Sales 680. 20.0 60.0 00.0 40.0 040. 040. 040. 040. 040.
00 0 0 0 0 00 00 00 00 00
Raw ($22 ($63 ($89 ($11 ($14 ($15 ($17 ($18 ($19 ($21
Material 48,9 86,9 95,9 604, 213, 674, 114, 554, 994, 434,
Purchases 92.0 76.0 68.0 960. 952. 880. 880. 880. 880. 880.
0) 0) 0) 00) 00) 00) 00) 00) 00) 00)
Raw ($49 ($15 ($19 ($24 ($29 ($27 ($27 ($26 ($26 ($42
Material ,800 7,78 9,20 9,00 6,41 8,85 4,58 8,42 2,64 4,96
Shipping .00) 8.00) 0.00) 0.00) 2.00) 6.00) 4.00) 8.00) 4.00) 0.00)
Wages and ($31 ($31 ($31 ($31 ($31 ($31 ($31 ($31 ($31 ($18
Salaries 3,50 3,50 3,50 3,50 3,50 3,50 3,50 3,50 3,50 8,10
2.41 2.41) 2.41) 2.41) 2.41) 2.41) 2.41) 2.41) 2.41) 1.45)
)
Rent ($10 ($11 ($11 ($11 ($11 ($11 ($11 ($11 ($11 ($11
5,93 5,56 5,56 5,56 5,56 5,56 5,56 5,56 5,56 5,56
9.00 9.82) 9.82) 9.82) 9.82) 9.82) 9.82) 9.82) 9.82) 9.82)
)
Utilities ($22 ($22, ($22, ($22, ($22, ($22, ($22, ($22, ($22, ($22,
,876 876. 876. 876. 876. 876. 876. 876. 876. 876.
.08) 08) 08) 08) 08) 08) 08) 08) 08) 08)
Repairs and ($14 ($21 ($29 ($38 ($46 ($50 ($54 ($58 ($62 ($66
Maintenanc 97,3 48,5 94,7 40,9 87,1 77,1 67,1 57,1 39,3 37,1
e 84.0 76.0 68.0 60.0 52.0 52.0 52.0 52.0 52.0 52.0
0) 0) 0) 0) 0) 0) 0) 0) 0) 0)
Insurance ($29 ($42 ($59 ($76 ($93 ($10 ($10 ($11 ($12 ($13
94,7 97,1 89,5 81,9 74,3 154, 934, 714, 478, 274,
68.0 52.0 36.0 20.0 04.0 304. 304. 304. 704. 304.
0) 0) 0) 0) 0) 00) 00) 00) 00) 00)
Advertising ($29 ($42 ($59 ($76 ($93 ($10 ($10 ($11 ($12 ($13
and 94,7 97,1 89,5 81,9 74,3 154, 934, 714, 478, 274,
Marketing 68.0 52.0 36.0 20.0 04.0 304. 304. 304. 704. 304.
0) 0) 0) 0) 0) 00) 00) 00) 00) 00)
Special ($23 ($34 ($47 ($61 ($74 ($81 ($87 ($93 ($99 ($10
Finishes 95,8 37,7 91,6 45,5 99,4 23,4 47,4 71,4 82,9 619,
and 14.4 21.6 28.8 36.0 43.2 43.2 43.2 43.2 63.2 443.
Packaging 0) 0) 0) 0) 0) 0) 0) 0) 0) 20)
Net Cash $17 $217 $304 $391 $478 $516 $554 $592 $628 $667
Flow from 323, 94,2 82,7 62,9 45,5 28,1 18,4 10,5 97,8 51,4
Operating 836. 06.0 74.8 55.6 24.4 52.4 24.4 80.4 44.4 49.4
Activities 11 9 9 9 9 9 9 9 9 5

Investing
Activities
Purchase of ($27 ($44 ($64 ($89 ($11 ($14 ($15 ($16 ($17 ($18 ($19
Property 26,4 92,1 45,7 84,3 522, 061, 231, 401, 571, 718, 911,
and 01.3 52.0 28.0 04.0 880. 456. 456. 456. 456. 056. 456.
Equipment 4) 0) 0) 0) 00) 00) 00) 00) 00) 00) 00)
Loans $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
0 0 0 0 0 0 0 0 0 0
Purchase of $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Investment 0 0 0 0 0 0 0 0 0 0
Securities
Research ($29 ($42 ($59 ($76 ($93 ($10 ($10 ($11 ($12 ($13
and 94,7 97,1 89,5 81,9 74,3 154, 934, 714, 478, 274,
Developme 68.0 52.0 36.0 20.0 04.0 304. 304. 304. 704. 304.
nt 0) 0) 0) 0) 0) 00) 00) 00) 00) 00)
Net Cash ($74 ($10 ($14 ($19 ($23 ($25 ($27 ($29 ($31 ($33
Flow from 86,9 742, 973, 204, 435, 385, 335, 285, 196, 185,
Investing 20.0 880. 840. 800. 760. 760. 760. 760. 760. 760.
Activities 0) 00) 00) 00) 00) 00) 00) 00) 00) 00)

Financing
Activities
Repurchase $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
of Stock 0 0 0 0 0 0 0 0 0 0
(Treasury
Stock)
Repayment $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
of Loans 0 0 0 0 0 0 0 0 0 0
Dividends $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
0 0 0 0 0 0 0 0 0 0
Corporation ($74 ($10 ($14 ($19 ($23 ($25 ($27 ($29 ($31 ($33
Tax 86,9 742, 973, 204, 435, 385, 335, 285, 196, 185,
20.0 880. 840. 800. 760. 760. 760. 760. 760. 760.
0) 00) 00) 00) 00) 00) 00) 00) 00) 00)
Net Cash ($74 ($10 ($14 ($19 ($23 ($25 ($27 ($29 ($31 ($33
Flow from 86,9 742, 973, 204, 435, 385, 335, 285, 196, 185,
Investing 20.0 880. 840. 800. 760. 760. 760. 760. 760. 760.
Activities 0) 00) 00) 00) 00) 00) 00) 00) 00) 00)
Net Yearly ($27 $23 $308 $535 $753 $974 $856 $746 $639 $504 $379
Cash Flow 26,4 49,9 ,446. ,094. ,355. ,004. ,632. ,904. ,060. ,324. ,929.
01.3 96.1 09 89 69 49 49 49 49 49 45
4) 1

Sum of $54
Cash Flow 37,9
Present 46.4
Values 8
NPV $27
11,5
45.1
4
IRR 39%
A4.3 Payback Period, Discounted Payback Period:
Table A4.5: Payback Period and Discounted Payback Period for the proposed Facility.

Year Optimistic Cash Discounted Pessimistic Cash Discounted

Flow (USD) Cash Flow- Flow (USD) Cash Flow-
10% Discount 10% Discount
Rate (USD) Rate (USD)
0 ($4,225,729.34) ($4,225,729.34) ($2,726,401.34) ($2726,401.34)
1 $4,211,538.51 $3,828,288.51 $2,349,996.11 $2,136,146.46
2 $815,375.69 $673,500.32 $308,446.09 $254,776.47
3 $1,193,123.69 $896,035.89 $535,094.89 $401,856.26
4 $1,556,891.69 $1,063,357.02 $753,355.69 $514,528.28
5 $1,924,639.69 $1,195,201.25 $974,004.49 $604,856.79
6 $1,729,019.69 $975,167.11 $856,632.49 $483,140.72
7 $1,546,139.69 $793,169.66 $746,904.49 $383,162.00
8 $1,366,399.69 $638,108.66 $639,060.49 $298,441.25
9 $1,141,839.69 $484,140.03 $504,324.49 $213,833.58
10 $1,008,819.69 $389,404.40 $379,929.45 $146,652.77
Payback Period
(Years) 2 3
Discounted
Payback Period 2 3
(Years