Company Name Project Name

Address Project Number Sheet 1

REV DATE BY APVD REV DATE BY APVD
ECONOMIC ANALYSIS

Form XXXXX-YY-ZZ
Owner's Name Capital Cost Basis Year 2006
Plant Location Units English Metric
Case Description On Stream 8,000 hr/yr 333.33 day/yr
REVENUES AND PRODUCTION COSTS CAPITAL COSTS CONSTRUCTION SCHEDULE

$MM/yr $MM Year % FC % WC % FCOP % VCOP

Main product revenue 560.0 ISBL Capital Cost 206.5 1 30.00%
Byproduct revenue 4.4 OSBL Capital Cost 82.6 2 70.00%
Raw materials cost 410.3 Engineering Costs 28.9 3 100.00% 100.00% 50.00%
Utilities cost 47.3 Contingency 43.4 4 100.00% 100.00%
Consumables cost 13.1 Total Fixed Capital Cost 361.4 5 100.00% 100.00%
VCOP 466.3 6 100.00% 100.00%
Salary and overheads 16.4 Working Capital 59.5 7+ 100.00% 100.00%
Maintenance 10.8
Interest 3.6
Royalties 3.0
FCOP 33.8

ECONOMIC ASSUMPTIONS

Cost of equity 0.25 Debt ratio 0.5 Tax rate 0.35

Cost of debt 0.05 Depreciation method Straight-line
Cost of capital 0.15 Depreciation period 10 years

CASH FLOW ANALYSIS

All figures in $MM unless indicated

Project year Cap Ex Revenue CCOP Gr. Profit Deprcn Taxbl Inc Tax Paid Cash Flow PV of CF NPV
1 108.4 0.0 0.0 0.0 0.0 0.0 0.0 -108.4 -94.3 -94.3
2 253.0 0.0 0.0 0.0 0.0 0.0 0.0 -253.0 -191.3 -285.6
3 59.5 280.0 267.0 13.1 0.0 13.1 0.0 -46.5 -30.5 -316.1
4 0.0 560.0 500.1 59.9 0.0 59.9 4.6 55.3 31.6 -284.5
5 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 19.4 -265.1
6 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 16.8 -248.3
7 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 14.6 -233.6
8 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 12.7 -220.9
9 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 11.1 -209.8
10 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 9.6 -200.2
11 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 8.4 -191.9
12 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 7.3 -184.6
13 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 6.3 -178.3
14 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 5.5 -172.7
15 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 4.8 -168.0
16 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 4.2 -163.8
17 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 3.6 -160.2
18 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 3.1 -157.0
19 0.0 560.0 500.1 59.9 0.0 59.9 21.0 38.9 2.7 -154.3
20 -59.5 560.0 500.1 59.9 0.0 59.9 21.0 98.4 6.0 -148.3

ECONOMIC ANALYSIS

Average cash flow 43.4 $MM/yr NPV 10 years -200.2 $MM IRR 10 years -6.5%
Simple pay-back period 9.69825527 yrs 15 years -168.0 $MM 15 years 2.4%
Return on investment (10 yrs) 10.27% 20 years -148.3 $MM 20 years 6.2%
Return on investment (15 yrs) 11.59% NPV to yr 1 -94.3 $MM

NOTES

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