1 2 3 4 5 6 7 8

REVENUE 1000 1090 1188.1 1295.029 1411.582 1538.624 1677.1 1828.039

Operating EXP 200 212 224.72 238.2032 252.4954 267.6451 283.7038 300.7261

DEBT 3000
Interest on debt 10.50%
315 315 315 315 315 315 315 315
 9 10 11 12 13 14 15
1992.563 2171.893 2367.364 2580.426 2812.665 3065.805 3341.727

318.7696 337.8958 358.1695 379.6597 402.4393 426.5857 452.1808

315 315 315 315 315 315 315

Assumptions

Initital Investment 5000.00

Debt/Initial Investment 0.70
Debt (Issue of Bonds) 3500.00
Equity 1500.00
Revenue in first year 1000.00
YoY increase in revenue 1.09
Operating Expenses in first year 200.00
YoY increase in OE 1.06
Interest rate on 5 year bonds 0.09
Interest rate on 10 year bonds 0.10
Interest rate on 15 year bonds 0.11
Rate of Depreciation 0.15
Corporate Tax Rate 0.33
Depreciation 333.3333
Life of the Project 15.00
YEAR 3 2 1 1 2 3 4 5

Revenue 1000 1090 1188.1 1295.029 1411.582

Expenses
Operating Exp 200 212 224.72 238.2032 252.4954
NET Revenue 800 878 963.38 1056.826 1159.086
DEPRECIATION
 6 7 8 9 10 11 12 13 14 15

1538.624 1677.1 1828.039 1992.563 2171.893 2367.364 2580.426 2812.665 3065.805 3341.727

267.6451 283.7038 300.7261 318.7696 337.8958 358.1695 379.6597 402.4393 426.5857 452.1808
1270.979 1393.396 1527.313 1673.793 1833.997 2009.194 2200.767 2410.225 2639.219 2889.546
YEAR -3 -2 -1 1 2 3 4 5
Opening balance 0 1635 2870 4210 3500 3500 3500 3500
Drawdown 1500 1000 1000 0 0 0 0 0
Total Outstanding 1500 2635 3870 4210 3500 3500 3500 3500
Interest expense 135 235 340 340 340 340 340 340
Bond Repayment 0 0 0 0 0 0 0 1500
Interest Paid 0 0 0 1050 340 340 340 340
Closing Balance 1635 2870 4210 3500 3500 3500 3500 2000
 6 7 8 9 10 11 12 13 14 15
2000 2000 2000 2000 2000 1000 1000 1000 1000 1000
0 0 0 0 0 0 0 0 0 0
2000 2000 2000 2000 2000 1000 1000 1000 1000 1000
205 205 205 205 205 105 105 105 105 105
0 0 0 0 1000 0 0 0 0 1000
205 205 205 205 205 105 105 105 105 105
2000 2000 2000 2000 1000 1000 1000 1000 1000 0
YEAR -3 -2 -1 1 2 3 4 5
Principal O/S 1500 2500 3500 3500 3500 3500 3500 2000
Coupons PAID 0 0 0 1050 340 340 340 340
Pincipal Repayment 0 0 0 0 0 0 0 1500
 6 7 8 9 10 11 12 13 14 15
2000 2000 2000 2000 1000 1000 1000 1000 1000 0
205 205 205 205 205 105 105 105 105 105
0 0 0 0 1000 0 0 0 0 1000
Year -3 -2 -1 1 2 3 4 5
CAPEX 2000 4000 5000 5000 4666.667 4333.333 4000 3666.667
Depriciation 333.3333 333.3333 333.3333 333.3333 333.3333
NET 2000 4000 5000 4666.667 4333.333 4000 3666.667 3333.333
 6 7 8 9 10 11 12 13 14 15
3333.333 3000 2666.667 2333.333 2000 1666.667 1333.333 1000 666.6667 333.3333
333.3333 333.3333 333.3333 333.3333 333.3333 333.3333 333.3333 333.3333 333.3333 333.3333
3000 2666.667 2333.333 2000 1666.667 1333.333 1000 666.6667 333.3333 0
YEAR -3 -2 -1 1 2 3 4 5
Equity 500 500 500 0 0 0 0 0
Dividend
Net cash flow
IRR
6 7 8 9 10 11 12 13 14 15
0 0 0 0 0 0 0 0 0 0