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FINANCIALS: MUNTERS EC50 vs EC52

Saturday, 1 April 2017

Objective:

Determine project feasibility of using Munters EC52 Cone Fans to replace Munters EC50
at Cortes Farms, Ormoc city

Assumptions:
Grow Days: 26 Electricity Cost: ₱9.50
Ave Fan Utilization: 70% Accounting Life: 10
Grows/year: 9 Interest Rate: 9.0%
Income Tax: 32.0%

Specific
Air Delivery Fan units at
Munters Fan Model motor rpm hp rating 3
Performance
m /hr 3 660 fpm
m /hr/w
EC50 (belt drive) 1700 1.5 41,300 37.0 11
EC52 (belt drive) 1700 1.0 35,100 47.1 13
note: Air delivery is at 25Pa SP

At 660 fpm, 9 grows/year


Fan units at Electricity Electricity Savings/
Fan Model kwhrs/ grow
660 fpm Cost/ grow Cost/ year year
EC50 (belt drive) 11 5,363.2 ₱50,950 ₱458,553 reference
EC52 (belt drive) 13 4,231.7 ₱40,201 ₱361,808 ₱96,745
Annual Savings is Php 96745

EC52 vs EC50 Incremental Cost:


Fan units at Total Cost for Incremental
Fan Model Unit Cost
660 fpm 660 fpm Cost
EC50 (belt drive) 11 ₱48,902 ₱537,922
EC52 (belt drive) 13 ₱58,443 ₱759,759 ₱221,837
Incremental cost to use EC52 instead of EC50 is Php 221837 (investment)

Financial Analysis:
Ave. Payback : 2.92 years (before tax)
Internal Rate of Return : 43.29% (before tax)
Net Present Value : ₱240,687
Average ROI : 34.23%
Profitability Index : 108.50%

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