Sales inc @

Yr
10% year
Discount rate 0.15 1 48600000
Land Cost -2800000 2 53460000
Land rehabilitation Costs -5500000 3 58806000
Land Sale Income 18000000 4 64686600
Building development & Construction Costs -13000000 5 71155260
Depreciation Buildings - to zero 0.1 6 78270786
P&E -7000000 7 86097864.6
Depreciation P&E - diminishing 0.2 8 94707651.06
Salvage P&E only -0.09 9 104178416.166
Tax rate - 1-3 -0.2 10 114596257.783
Tax rate - 4 onwards -0.25
Yr 1 Sales - Increase at 10%/yr 48600000
Cost of Sales -0.65
Yr 1 Fixed Cost - Increase at 5%/yr -11500000
Working cap -0.06
CF from Land Sale before tax 12500000
CF from Land Sale after tax 9375000

Year 2022 2023 2024 2025

Year # 0 1 2 3
Sales in ($) 48600000 53460000 58806000
Var Costs 0 -31590000 -34749000 -38223900
Fixed Costs -11500000 -12075000 -12678750
Depreciation Buildings -1300000 -1300000 -1300000
Depreciation P&E -1400000 $ (1,120,000.00) $ (896,000.00)

EBIT 2810000 4216000 5707350

Tax (yr 1 -3 @ 20%, 4 onward @ 25%) -562000 -843200 -1426837.5
NPAT 2248000 3372800 4280512.5
OCF 4948000 5792800 6,476,512.50

Initial cost (sum of all costs incurred) -22800000

Wk. capital -2916000 -3207600 -3528360 -3881196
∆NWC -291600 -320760 -352836
Net CF from salvage
Net CF from Land Sale

CF -22800000 4656400 5472040 6,123,676.50

project 2

Sales inc @
Yr
10% year
Discount rate 0.15 1 45000000
Land Cost 0 2 49500000
Land rehabilitation Costs 0 3 54450000
Land Sale Income 0 4 59895000
Building development & Construction Costs -15000000 5 65884500
Depreciation Buildings - to zero 0.1 6 72472950
P&E -6000000 7 79720245
Depreciation P&E - diminishing 0.2 8 87692269.5
Salvage P&E only -0.11 9 96461496.45
Tax rate - 1-3 -0.3 10 106107646.095
Tax rate - 4 onwards -0.3
Yr 1 Sales - Increase at 10%/yr 45000000
Cost of Sales -0.75
Yr 1 Fixed Cost - Increase at 5%/yr -4000000
Working cap -0.06
CF from Land Sale before tax 0
CF from Land Sale after tax 0
increase in fixed cost 0.05

Year 2022 2023 2024 2025

Year # 0 1 2 3
Sales in ($) 45000000 49815000 55145205
Var Costs 0 -33750000 -37361250 -41358903.75
Fixed Costs -4000000 -4200000 -4410000
Depreciation Buildings -1500000 -1500000 -1500000
Depreciation P&E -1200000 $ (960,000.00) $ (768,000.00)
lease -165000 -165000 -165000
EBIT 4385000 5628750 6943301.25
Tax (0.3) -1315500 -1125750 -2082990.375
NPAT 3069500 4503000 4860310.875
OCF 5769500 6963000 7128310.875
Initial cost (sum of all costs incurred) -21000000
Wk. capital -2700000 -2988900 -3308712.3 -3662744.5161
∆NWC -288900 -319812.3 -354032.2161
Net CF from salvage
Net CF from Land Sale

CF -21000000 5480600 6643187.7 6774278.6589

Fixed Cost @ Building Depreceation
Book Value
5% Depreceation Amt
-11500000 1 -1300000 -11700000
-12075000 2 -1300000 -10400000
-12678750 3 -1300000 -9100000
-13312687.5 4 -1300000 -7800000
-13978321.875 5 -1300000 -6500000
-14677237.969 6 -1300000 -5200000
-15411099.867 7 -1300000 -3900000
-16181654.861 8 -1300000 -2600000
-16990737.604 9 -1300000 -1300000
-17840274.484 10 -1300000 0

2026 2027 2028 2029 2030 2031

4 5 6 7 8 9
64686600 71155260 78270786 86097864.6 94707651.06 104178416.166
-42046290 -46250919 -50876010.9 -55963611.99 -61559973.189 -67715970.5079
-13312687.5 -13978321.875 -14677237.9688 -15411099.8672 -16181654.8605 -16990737.6036
-1300000 -1300000 -1300000 -1300000 -1300000 -1300000
$ (716,800.00) $ (573,440.00) $ (458,752.00) $ (367,001.60) $ (293,601.28) $ (234,881.02)

7310822.5 9052579.125 10958785.13125 13056151.14281 15372421.73045 17936827.03053

-1827705.625 -2263144.7813 -2739696.28281 -3264037.7857 -3843105.43261 -4484206.75763
5483116.875 6789434.34375 8219088.848438 9792113.357109 11529316.29784 13452620.27289
7,499,916.88 8,662,874.34 9,977,840.85 11,459,114.96 13,122,917.58 14,987,501.30

-4269315.6 -4696247.16 -5165871.876 -5682459.0636 -6250704.96996 -6875775.46696

-388119.6 -426931.56 -469624.716 -516587.1876 -568245.90636 -625070.496996

7,111,797.28 8,235,942.78 9,508,216.13 10,942,527.77 12,554,671.67 14,362,430.80

Fixed Cost @ Building Depreceation
Book Value
5% Depreceation Amt
-4000000 1 -1500000 -13500000
-4200000 2 -1500000 -12000000
-4410000 3 -1500000 -10500000
-4630500 4 -1500000 -9000000
-4862025 5 -1500000 -7500000
-5105126.25 6 -1500000 -6000000
-5360382.5625 7 -1500000 -4500000
-5628401.6906 8 -1500000 -3000000
-5909821.7752 9 -1500000 -1500000
-6205312.8639 10 -1500000 0

2026 2027 2028 2029 2030 2031

4 5 6 7 8 9
61045741.935 67577636.322 74808443.4085 82812946.85321 91673932.16651 101483042.9083
-45784306.451 -50683227.242 -56106332.5564 -62109710.1399 -68755449.1249 -76112282.1812
-4630500 -4862025 -5105126.25 -5360382.5625 -5628401.69063 -5909821.77516
-1500000 -1500000 -1500000 -1500000 -1500000 -1500000
$ (614,400.00) $ (491,520.00) $ (393,216.00) $ (314,572.80) $ (251,658.24) $ (201,326.59)
-165000 -165000 -165000 -165000 -165000 -165000
8351535.48375 9875864.08051 11538768.60213 13363281.3508 15373423.111 17594612.35992
-2505460.6451 -2962759.2242 -3461630.58064 -4008984.40524 -4612026.9333 -5278383.70798
5846074.83863 6913104.85636 8077138.021488 9354296.945562 10761396.1777 12316228.65195
7960474.83863 8904624.85636 9970354.021488 11168869.74556 12513054.4177 14017555.24395
-4054658.1793 -4488506.6045 -4968776.81119 -5500435.92999 -6088982.5745 -6740503.70997
-391913.66322 -433848.42519 -480270.206683 -531659.118798 -588546.644509 -651521.135471

7568561.1754 8470776.43117 9490083.814806 10637210.62676 11924507.77319 13366034.10848

 P&E
Depreceation Amt Book Value
Depreceation
1 $ (1,400,000.00) $ (5,600,000.00)
2 $ (1,120,000.00) $ (4,480,000.00)
3 $ (896,000.00) $ (3,584,000.00)
4 $ (716,800.00) $ (2,867,200.00)
5 $ (573,440.00) $ (2,293,760.00)
6 $ (458,752.00) $ (1,835,008.00)
7 $ (367,001.60) $ (1,468,006.40)
8 $ (293,601.28) $ (1,174,405.12)
9 $ (234,881.02) $ (939,524.10)
10 $ (187,904.82) $ (751,619.28)
Acc Dep $ (6,248,380.72)
Salvage 630000
Gain / (Loss) -121619.2768 book value at yr 10 + salvage value
Tax credit 30404.8192 gain/loss * tax rate
Net Csh Salvage 660404.8192 salvage value + tax credit or loss

2032
10
114596257.7826
-74487567.5587
-17840274.4838
-1300000
$ (187,904.82)

20780510.92096
-5195127.73024
15585383.19072
17,073,288.01

6875775.466956
30404.8192
9375000

33,354,468.30
 P&E
Depreceation Amt Book Value
Depreceation
1 $ (1,200,000.00) $ (4,800,000.00)
2 $ (960,000.00) $ (3,840,000.00)
3 $ (768,000.00) $ (3,072,000.00)
4 $ (614,400.00) $ (2,457,600.00)
5 $ (491,520.00) $ (1,966,080.00)
6 $ (393,216.00) $ (1,572,864.00)
7 $ (314,572.80) $ (1,258,291.20)
8 $ (251,658.24) $ (1,006,632.96)
9 $ (201,326.59) $ (805,306.37)
10 $ (161,061.27) $ (644,245.09)
Acc Dep $ (5,355,754.91)
Salvage -660000
Gain / (Loss) -1304245.0944 book value at yr 10 + salvage value
Tax credit 391273.52832 gain/loss * tax rate
Net Csh Salvage -268726.47168 salvage value + tax credit or loss

2032
10
112341728.4995
-84256296.3746
-6205312.86391
-1500000
$ (161,061.27)
-165000
20054057.98736
-6016217.39621
14037840.59116
15698901.86476
 0
6740503.709971
391273.52832
0

22830679.10305
scenario 1 0 1 2
Djakarta Plant 2022 2023 2024
Cost of Land 2800
Development and Construction of building 13000
Cost of plant and equipment 7000
Sale of land -terminal year
Sale of land -terminal year - Taxable Value
Salvage Value-Building
Salvage Value-P&E
Rehabilitation cost
Change in working capital @6% 2916 3207.6

Sales Revenue $48,600 53460

Other Revenue 0 0
COGS 31590 34749
Fixed Costs 11500 12075
Depreciation -equipment 1246 996.8
Depreciation -building 1300 1300
EBIT 2964 4339.2
Tax @20% then 25% -592.8 -867.84
Net income 2371.2 3471.36
Free cash flow (NI+Dep+change in WC) ($22,800) 8124.8 9296.52
Discount Factor @12% 1 0.892857143 0.79719388
Discount Cash Flow -22800 7254.285714 7411.12883
Cumulative Discount Cash Flow -22800 -15545.71429 -8134.58546
PayBack 12 12
Net Present Value
Payback Period in years
IRR
Discountng factor

scenario 2 0 1 2
Gladstone Plant 2022 2023 2024

Development and Construction of building 15000

Cost of plant and equipment 6000
Sale of land -terminal year
Sale of land -terminal year - Taxable Value
Salvage Value-Building
Salvage Value-P&E
Rehabilitation cost
Change in working capital @6% 2700 2889

Sales Revenue $45,000 $48,150.00

Other Revenue
COGS 75% of sales ($33,750) ($36,113)
Fixed Costs 4000 4200
Depreciation -equipment 1068 854.4
Depreciation -building 1300 1300
EBIT 72382 77908.1
Tax @30% 21714.6 23372.43
Opportunity cost 65 65
Net income 50602.4 54470.67
Free cash flow (NI+Dep+change in WC) ($21,000) 55859.4 59716.3
Discount Factor @15% 1 0.869565217 0.75614367
Discount Cash Flow -21000 48573.3913 45154.1021
Cumulative Discount Cash Flow -21000 27573.3913 72727.4934
PayBack -12 -6.81197435
Net Present Value
Payback Period in years
IRR
Discountng factor
 3 4 5 6 7 8 9
2025 2026 2027 2028 2029 2030 2031

3528.36 3881.196 4269.3156 4696.24716 5165.871876 5682.4590636 6250.70497

58806 64686.6 71155.26 78270.786 86097.8646 94707.65106 104178.41617

0 0 0 0 0 0 0
38223.9 42046.29 46250.919 50876.0109 55963.61199 61559.973189 67715.970508
12678.75 13312.6875 13978.321875 14677.237969 15411.099867 16181.654861 16990.737604
797.44 637.952 510.3616 408.28928 326.631424 261.3051392 209.04411136
1300 1300 1300 1300 1300 1300 1300
5805.91 7389.6705 9115.657525 11009.247851 13096.521319 15404.717871 17962.663943
-1161.182 -1477.9341 -1823.131505 -2201.8495703 -2619.3042638 -3080.9435743 -3592.5327886
4644.728 5911.7364 7292.52602 8807.398281 10477.217055 12323.774297 14370.131155
10623.364 12119.004 13799.13478 15681.559437 17786.307543 20135.784406 22754.950733
0.711780247813 0.6355180784 0.5674268557 0.5066311212 0.4523492153 0.403883228 0.360610025
7561.500660532 7701.8461343 7829.9996599 7944.7660394 8045.6222607 8132.5056039 8205.6633522
-573.0847986516 7128.7613356 14958.760995 22903.527035 30949.149295 39081.654899 47287.318252
12 0.9094778791 -11.107094914 -22.925305204 -34.594136952 -46.160480758 -57.667326853
$26,801.43
3.075789823261
49%
12%

3 4 5 6 7 8 9
2025 2026 2027 2028 2029 2030 2031

3091.23 3307.6161 3539.149227 3786.8896729 4051.97195 4335.6099865 4639.1026855

$51,520.50 $55,126.94 $58,985.82 $63,114.83 $67,532.87 $72,260.17 $77,318.38

 ($38,640) ($41,345) ($44,239) ($47,336) ($50,650) ($54,195) ($57,989)
4410 4630.5 4862.025 5105.12625 5360.3825625 5628.4016906 5909.8217752
683.52 546.816 437.4528 349.96224 279.969792 223.9758336 179.18066688
1300 1300 1300 1300 1300 1300 1300
83767.355 89994.82025 96625.707988 103695.8603 111242.16285 119302.91375 127918.15922
25130.2065 26998.446075 28987.712396 31108.758091 33372.648856 35790.874125 38375.447766
65 65 65 65 65 65 65
58572.1485 62931.374175 67572.995591 72522.102212 77804.513998 83447.039624 89477.711454
63863.2846 68317.339402 73097.338064 78224.036402 83720.093776 89610.118143 95920.731994
0.657516232432 0.5717532456 0.4971767353 0.4323275959 0.3759370399 0.3269017738 0.284262412
41991.14628092 39060.660533 36342.295898 33818.4096 31473.484236 29293.706576 27266.658641
114718.6396647 153779.3002 190121.5961 223940.0057 255413.48993 284707.19651 311973.85515
-19.32781032984 -32.783665079 -47.243225721 -62.77696818 -79.462047451 -97.382350685 -116.62868095
$178,748.47
-5.910287479932
273%
15%
 10 10
2032 Terminal

770
18000
15200
1170

5500
6875.775467 46473.53

114596.25778
0 11640
74487.567559
17840.274484
167.23528909
1300
20801.180451 11640
-4160.23609 2910
16640.944361 8730
64581.709786 55203.53
0.3219732366 0.321973
20793.582125 17774.06
68080.900376 85854.96
-69.1531927 -39.28957

10 10
2032 Terminal

660

0
1350

4963.8398735 37304.41

$82,730.66
 2010
($62,048)
6205.3128639
143.3445335
1300
137130.00558 2010
41139.001674 603
65 65
95926.003906 1342
134673.75794 38646.41
0.2471847061 0.247185
33289.293278 9552.801
345263.14843 354815.9
-137.2990476 -124.4592
equipment dereciation scenarion 1
year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9
value 6230 4984 3987.2 3189.76 2551.808 2041.446 1633.157 1306.526 1045.221
depreciation 1246 996.8 797.44 637.952 510.3616 408.2893 326.6314 261.3051 209.0441

equipment dereciation scenarion 2

year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9
value 5340 4272 3204 2349.6 1666.08 1119.264 681.8112 331.849 51.87917
depreciation 1068 1068 854.4 683.52 546.816 437.4528 349.9622 279.9698 223.9758
year 10 year 11 year 12
836.1764 668.9412 535.1529
167.2353 133.7882 107.0306

year 10 year 11 year 12

-172.0967 -351.2773 -494.6219
179.1807 143.3445 114.6756 91.7405
Calculation of YTM of the CWC using excel:
Particulars Amount Valuation of WACC
PV 91.7 Value of equity 665000000
Time 14 Value of debt 252175000
FV 100 Cost of equity 7.375%
Coupon 8 Cost of debt 9%
YTM 9% Tax rate 32%
Cost of equity 7.375% WACC 7.0431%

Company Tax rate Cost of Debt

Life Water 36% 7.75%
Hydro Vital 34% 8.25%

Cases
Normal case
Year 0 Year 1
Particulars 0 1
Initial Investemnt $ 5,000,000.00
Cash Flows $ 2,687,500.00
less: Variable cost $ 675,000.00
Normal case
Fixed cost $ 50,000.00
Cash inflows $ (5,000,000.00) $ 1,962,500.00
PVF >7.0431 $ 1.00 $ 0.93
PV of cash flows $ (5,000,000.00) $ 1,833,374.21
NPV $ 1,836,184.00

Best case
Year 0 Year 1
Particulars $ - $ 1.00
Initial Investemnt $ 5,000,000.00
Cash Flows $ 3,262,500.00
less: Variable cost $ 450,000.00
Best Case
Fixed cost $ 50,000.00
Cash inflows $ (5,000,000.00) $ 2,762,500.00
PVF @7.0431 $ 1.00 $ 0.93
PV of cash flows $ (5,000,000.00) $ 2,580,736.95
NPV $ 4,620,931.34

Worst case
Year 0 Year 1

Worst case
 Particulars $ - $ 1.00
Initial Investemnt $ 5,000,000.00
Cash Flows $ 1,803,750.00
less: Variable cost $ 1,175,000.00
Worst case
Fixed cost $ 50,000.00
Cash inflows $ (5,000,000.00) $ 578,750.00
PVF @7.0431 $ 1.00 $ 0.93
PV of cash flows $ (5,000,000.00) $ 540,670.23
NPV $ (2,980,558.67)
 WACC for Hydro Vital using excel
Cost of Equity 19.19%
Cost of Debt 8.25%
D/E 0.43
Tax rate 34%
WACC 28.3800%

Cost of equity D/E Beta

22.14% 0.35 1.6
19.19% 0.43 1.7
WACC for Life Water using excel
Cases Cost of Equity 22.14%
Cost of Debt 7.75%
Year 2 Year 3 Year 4 D/E 0.35
2 3 4 Tax rate 36%
WACC 22.4000%
$ 2,741,250.00 $ 2,796,075.00 $ 2,851,996.50
$ 688,500.00 $ 702,270.00 $ 716,315.40
$ 50,000.00 $ 50,000.00 $ 50,000.00
$ 2,002,750.00 $ 2,043,805.00 $ 2,085,681.10
$ 0.87 $ 0.82 $ 0.76
$ 1,747,872.09 $ 1,666,340.76 $ 1,588,596.93

Chart T
Year 2 Year 3 Year 4 $3,000,000.00
$ 2.00 $ 3.00 $ 4.00
$2,500,000.00

$ 3,327,750.00 $ 3,394,305.00 $ 3,462,191.10 $2,000,000.00

$ 459,000.00 $ 468,180.00 $ 477,543.60
$ 50,000.00 $ 50,000.00 $ 50,000.00 $1,500,000.00
$ 2,818,750.00 $ 2,876,125.00 $ 2,934,647.50
$1,000,000.00
$ 0.87 $ 0.82 $ 0.76
$ 2,460,024.69 $ 2,344,942.07 $ 2,235,227.63 $500,000.00

$-
1 2

normal case Be

Year 2 Year 3 Year 4

$ 2.00 $ 3.00 $ 4.00

$ 1,839,825.00 $ 1,876,621.50 $ 1,914,153.93

$ 1,198,500.00 $ 1,222,470.00 $ 1,246,919.40
$ 50,000.00 $ 50,000.00 $ 50,000.00
$ 591,325.00 $ 604,151.50 $ 617,234.53
$ 0.87 $ 0.82 $ 0.76
$ 516,070.63 $ 492,572.56 $ 470,127.90
 Year 0 Year 1 Year 2 Year 3 Year 4
Particulars 0 1 2 3 4
Initial Inv 5000000
Cash Flows 2687500 2741250 2796075 2851997
less: Variable cost 675000 688500 702270 716315.4
Fixed cost 50000 50000 50000 50000
Cash inflow-5000000 1962500 2002750 2043805 2085681
PV Factor 1 0.778938 0.606744 0.472615 0.368138
PV of cash -5000000 1528665 1215156 965933.8 767818.2
NPV -522427

Year 0 Year 1 Year 2 Year 3 Year 4

Particulars 0 1 2 3 4
Initial Inv 5000000
Cash Flows 2687500 2741250 2796075 2851997
less: Variable cost 675000 688500 702270 716315.4
Fixed cost 50000 50000 50000 50000
Cash inflow-5000000 1962500 2002750 2043805 2085681
PV factor 1 0.735294 0.540657 0.397542 0.29231
PV of cash -5000000 1443015 1082802 812498.8 609666.4
NPV -1052018

Chart Title
.00

.00

.00

.00

.00

.00

$-
1 2 3 4

normal case Best case Worst case