Inputs for Biogas Economic Assessment

Brent Gloy
Department of Applied Economics and Management
Cornell University
March 2008

The following worksheets itemize the inputs that you will need to conduct an economic
assessment of your biogas project. The inputs are designed for use with two Microsoft
Excel spreadsheets. The spreadsheets are available on the Cornell Manure Management
website: www.manuremanagement.cornell.edu/ and the Cornell Program on Agriculture
and Small Business Finance website: www.agfinance.aem.cornell.edu/.

The inputs are used to create pro-forma financial statements for the biogas project and
conduct a discounted cash flow analysis of the project. A basic understanding of
financial concepts is required to understand and interpret the outputs of the spreadsheets.
These tools should only be used for an initial analysis of a biogas project. A more
thorough analysis is required to establish the expected profitability of the project.

Two tools have been developed. The first tool is designed for use with FarmWare 3.1
which was developed by the United States Environmental Protection Agency and
available for free download at: www.epa.gov/agstar/resources/handbook.html. This
analysis uses the outputs of FarmWare 3.1 to conduct a financial analysis. This
worksheet does not guide the user through the inputs required to conduct a FarmWare
assessment.

The second tool allows the user to input more detailed information about their specific
anaerobic digestion project. The tool requires that the user possess information about the
capital and operating costs for the project. It utilizes a variety of assumptions to create
estimates of the biogas and electrical generation potential of the project. Users should
carefully consider the validity of the assumptions utilized in the assessment before
making investment decisions. In other words, these tools should be used with caution
and no warranty is made regarding the validity of outputs obtained and decisions made
based upon the model. The assessment does not consider the impact of any taxes that
may be generated or saved by the project. These values may significantly alter the
profitability of the project. The spreadsheets do not currently consider inflation or allow
for changing prices over time. These assumptions can be modified with modest
alterations to the spreadsheets.

In both spreadsheets users should be careful to enter parameter values that correspond to
the units listed in the spreadsheet. The spreadsheet will not identify inappropriate units
or entries that are unrealistic.
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Base Assumptions
Lactating Cows 800
Dry Cows 200
Total Cows 1000

Items Cost Digester S Generator Total % Depreciation (Yrs)

Land $0 100% 0% 100%
Building $100,000 70% 30% 100% 20
Site Work $45,000 67% 33% 100% 20
Power Wiring $135,000 6% 94% 100% 20
Manure Piping $15,000 100% 0% 100% 20
Generator $150,000 0% 100% 100% 7
Boiler $25,000 90% 10% 100% 7
Digester Tank $200,000 100% 0% 100% 20
Pumps $20,000 100% 0% 100% 7
Controls $14,250 5% 95% 100% 7
Total Materials $704,250

Project Development $42,500

Engineering $67,500
Construction/Mgt $108,000
Consulting $18,000
Total Other $236,000

Total Capital Costs $940,250

Working Capital $30,000

Participate in NYSERDA Capacity Incentive enter 1 if yes 0 if no 1

Other Grants $'s 0

Days in Inventory of:

Fuels etc 20
Accounts Recievable 20
Accounts Payable 25

Gas Production Assumptions -- Manure

Solid conversion to biogas (%) 30%
CF of biogas per lb VS converted 16
btu's per cf of biogas 625

Gas Production Assumptions -- Other Waste Streams

Tipping Fees net of disposal costs per ton 0
Tons per day -
volatile solids content % 40%
Solid conversion to biogas (%) 30%
CF of biogas per lb VS converted 16
btu's per cf of biogas 625

Thermal conversion efficiency 25%

Daily online percent 90%

Pre-System on-farm power requirement (kWh/Year) 850,000

Power use of ADG-to-E system (kWh/Year) 54,750

Purchase price from grid ($'s/kWh) 0.1200

Sale price to grid ($'s/kWh) 0.0700

Participate in the NYSERDA Performance Incentive 1= yes, 0 = no 1

Carbon Credit Price ($'s/ton) 2

Type of Existing Manure Handling System (for methane baseline) Anaerobic Lagoon
OPERATING EXPENSES
CAN USE % OF CAPITAL OR BREAK OUT

Operating, Repairs, and Maintenance % of Capital 5.0%

Operating, Repairs, and Maintenance 47,013
property taxes 0
Insurance 0
Office 0
Oil and Fuel 0
Accounting and Legal 0
Labor 0
Total Expenses 47,013
cost per kwh ($'s/kwh) 0.04

Percent Financing on Personal Property 65%

Term on Personal Property (years) 7
Rate on Personal Property (%) 8%
Percent Financing on Real Property 70%
Land percent financed 80%
Term on Long-Tem Financing 20
Rate on L.T. financing 8%
Discount Rate 10%

Terminal Value Multiple 10

Terminal Value Implied by Discount Rate 10

RESULTS
NPV zero Terminal Value -$180,014
NPV with Terminal Value $90,767
IRR on all capital zero terminal value 4%
IRR with Terminal Value 12%
Base Assumptions
Lactating Cows 800
Dry Cows 200
Total Cows 1000

*Calculating Capital Costs for Establishment Costs Per Cow in Dollars

Items Cost Digester System Generator System Total % Digester System
Land $0 100% 0% 100% $0.00
Building $100,000 70% 30% 100% $70.00
Site Work $45,000 67% 33% 100% $30.15
Power Wiring $135,000 6% 94% 100% $8.10
Manure Piping $15,000 100% 0% 100% $15.00
Generator $150,000 0% 100% 100% $0.00
Boiler $25,000 90% 10% 100% $22.50
Digester Tank $200,000 100% 0% 100% $200.00
Pumps $20,000 100% 0% 100% $20.00
Controls $14,250 5% 95% 100% $0.76
Total Materials $704,250 $366.51

Project Development $42,500 52% 48% 100% $22.12

Engineering $67,500 52% 48% 100% $35.13
Construction/Mgt $108,000 52% 48% 100% $56.21
Consulting $18,000 52% 48% 100% $9.37
Total Other $236,000 $122.82

Total Capital Costs $940,250 $489.32

Working Capital $30,000

Total Capital Costs $970,250

Grants
NYSERDA Capacity $70,706
Other Grants 0
Total Grants $70,706

Net Capital Costs $899,544

Per Cow in Dollars
Generator System Depreciation (Yrs) 20 Year 7 Year
$0.00 0 $0 $0
$30.00 20 $100,000 $0
$14.85 20 $45,000 $0
$126.90 20 $135,000 $0
$0.00 20 $15,000 $0
$150.00 7 $0 $150,000
$2.50 7 $0 $25,000
$0.00 20 $200,000 $0
$0.00 7 $0 $20,000
$13.49 7 $0 $14,250
$337.74 $495,000 $209,250

$20.38 $22,118 $20,382

$32.37 $35,128 $32,372
$51.79 $56,205 $51,795
$8.63 $9,368 $8,632
$113.18 $122,819 $113,181

$450.93 $617,819 $322,431

Depreciation Calculator

20 Year Life 617,819

7 Year Life 322,431

Total Depreciable Assets 940,250

Personal Property 7 year MACRS 2008 2009 2010 2011 2012

Depreciation Rate % 14.29 24.49 17.49 12.49 8.93
Depreciation Expense 46,075 78,963 56,393 40,272 28,793
Accumulated Depreciation 46,075 125,039 181,432 221,704 250,497
Book Value 276,356 197,392 140,999 100,727 71,934

Real Property 20 year MACRS 2008 2009 2010 2011 2012

Depreciation Rate 3.75 7.219 6.677 6.177 5.713
Depreciation Expense 23,168 44,600 41,252 38,163 35,296
Accumulated Depreciation 23,168 67,769 109,020 147,183 182,479
Book Value 594,651 550,050 508,799 470,636 435,340

Total Depreciation 69,244 123,564 97,645 78,434 64,089

Accumulated Depreciation 69,244 192,807 290,452 368,887 432,976
Book Value 871,006 747,443 649,798 571,363 507,274

Inventory Calculators Days in inventory amount value

Fuels etc 20 129 2,576

Accounts Recievable 20 12,282

Accounts Payable 25 (3,220)
Net Inventory 11,638
 2013 2014 2015 2016 2017
8.92 8.93 4.46
28,761 28,793 14,380
279,258 308,051 322,431 322,431 322,431
43,174 14,380 -

2013 2014 2015 2016 2017

5.285 4.888 4.522 4.462 4.461
32,652 30,199 27,938 27,567 27,561
215,131 245,330 273,267 300,835 328,395
402,688 372,489 344,551 316,984 289,423

61,413 58,992 42,318 27,567 27,561

494,388 553,380 595,699 623,266 650,827
445,862 386,870 344,551 316,984 289,423
Lactating Cows 800
Dry Cows 200

Milking Animals
pounds of manure per cow/day 150.00
volatile solids content % 11.33%
Solid conversion to biogas 30%
CF of biogas per lb VS converted 16
btu's per cf of biogas 625
btu's per cow per day 51,000

CF methane per cow per day 51 Value of 1MMBTU ($'s)

CF biogas per cow per day 81.60 Value per ton

Total BTU's/Year 14,892,000,000

Total Tons of Waste treated per year 21,900
Total Solids per year 2,920

dry cows
pounds of manure per cow/day 83.00
volatile solids content % 11.08%
Solid conversion to biogas 30%
CF of biogas per lb VS converted 16
btu's per cf of biogas $ 625
btu's per cow per day 27,600

CF methane per cow per day 28 Value of 1MMBTU ($'s)

CF biogas per cow per day 44.16 Value per ton

Total BTU's/Year 2,014,800,000

Total Tons of Waste treated per year 3,030
Total Solids per year 401

Other Wastes
Tipping Fees net of disposal costs per ton $0.00
Tons per day -
volatile solids content % 40%
Solid conversion to biogas 30%
CF of biogas per lb VS converted 16 Value of 1MMBTU ($'s)
btu's per cf of biogas 625 Value per ton
btu's per day -

CF methane per day -

CF biogas per day -

Total BTU's/Year -
Total Tons of Waste treated per year -
Lactating Cows
Total Manure and Nutrients Generated by Dairy Project
per cow per day per cow/year
Total Manure lbs 150.00 54,750
tons 0.08 27.38
gallons 18.07 6,596

total solids lbs 20 7,300

tons 0.01 4

Volatile Solids lbs 17 6,205

tons 0.0085 3.10

Nitrogen lbs 0.99 361

tons 0.000495 0.18

Phosphorus lbs 0.17 62

tons 0.000085 0.03

Potassium lbs 0.23 84

tons 0.000115 0.04

Source:
ASAE D384.2 Mar2005 Manure Production and Characteristics

units Lactating Dairy Dry Cow

Total Manure lbs lbs 150 83
Density lb/ft3
Total Solids lb 20 11
Volatile Solids lb 17 9.2
Nitrogen lb 0.99 0.5
Phosphorus lb 0.17 0.066
Potassium lb 0.23 0.33
 6
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 Dry Cows
Total Manure and Nutrients Generated by Dairy Project
daily operation annual operation per cow pe per cow/year
120,000 43,800,000 Total Manure lbs 83.00 30,295
60 21,900 tons 0.04 15.15
14,458 5,277,108 gallons 10.00 3,650

16,000 5,840,000 total solids lbs 11 4,015

8 2,920 tons 0.0055 2

13,600 4,964,000 Volatile Solids lbs 9.2 3,358

7 2,482 tons 0.0046 1.68

792 289,080 Nitrogen lbs 0.5 183

0 145 tons 0.00025 0.09

136 49,640 Phosphorus lbs 0.066 24

0 25 tons 0.000033 0.01

184 67,160 Potassium lbs 0.33 120

0 34 tons 0.000165 0.06
daily operation annual operation
16,600 6,059,000
8 3,030
2,000 730,000

2,200 803,000
1 401

1,840 671,600
1 336

100 36,500
0 18

13 4,818
0 2

66 24,090
0 12
Year 2008 2009
MMBTUs per year 16,907 16,907
btus per kWh 3,412 3,412
Thermal conversion efficiency 25% 25%
Daily online percent 90% 0.9
kWhs possible daily 3,394 3,394
Generator Capacity kW 141 141
Generator capacity kW/h 141 141
Energy generation kWh / year 1,114,897 1,114,897

Power Use and Valuation

Pre-System on-farm power requirement (kWh/Year) 850,000 850,000
Power use of ADG-to-E system (kWh/Year) 54,750 54,750
Total farm energy requirement (kWh / year) 904,750 904,750
Electricity generation kWh 1,114,897 1,114,897
Electricity units available for sale (kWh/year) 210,147 210,147
Purchase price from grid (c/kWh) Pp 0.1200 0.1200
Sale price to grid (c/kWh) Ps 0.0700 0.0700
Real electricity savings (kWh/year) 850,000 850,000
Excess generation 210,147 210,147
Value of on-farm electricity generated $ $102,000 $102,000
Value of excess electricity generated $ $14,710 $14,710
Performance Incentive 1= yes, 0 = no 1 1
Performance incentive $ (3 years)* $99,102 $99,102
*$0.10/kwh*Capacity(kw)*8760 hours/yr*80% capacity

Carbon Credit Price ($'s/ton) 2 2

Carbon Credits Possible 4,170 4,170
Carbon Credit Revenue $ 8,340 $ 8,340

FOR COMPARISON ONLY

Assumes Waste Heat from Steam Process will heat digester

Conversion of Methane to electricity

btu's per kw hour 3,412
thermal conversion efficiency 25%
on-line percent 90%
KW hours possible 1,238,775

electricity cost ($/kwh) 0.10000

Value $ 123,877
operating costs for electricity generation ($/kwh) $0.015
Net value per cow $105.296
General Statistics
1000 CF of Biogas per year 27,051
1000 CF of Methane per year 16,907
1000 CF of Methane per day 46

Carbon Credits
Lbs of CH4 per cf of methane 0.04246
Metric Tons of CH4 per year 326
GHG Factor for Methane 21.00

Tons of CO2 Credits Possible 6,838

NET Price Per Credit ($'s per ton) 2
NET Value of Carbon Credits $ 13,676
EX ANTE TONS OF CO2 E per year 4,170 These values are based on CCX proced
EX Ante Value of Carbon Credits $ 8,340 that the Ex Ante calculations are less tha
It may be possible to generate credits fo
*See http://www.epa.gov/gasstar/pdf/unitconverter_final.pdf

EX ANTE APPROACH TO METHANE

number of dairy cows 1
type of existing treatment (CHOOSE ONE) Anaerobic Lagoon
Methane Emission Factor 0.544 from table b2 in CCX materials
Solid Separation Conversion Factor 100% Use 100% unless separating before entr
Percent of Manure Handled with System 100%
days 365
GWP of Methane 21

Baseline annual GHG emissions 4.17

number of dairy heifers 1

type of existing treatment (CHOOSE ONE) Anaerobic Lagoon
Methane Emission Factor 0.221
Solid Separation Conversion Factor 100%
Percent of Manure Handled with System 100%
days 365
GWP of Methane 21

Baseline annual GHG emissions 1.69

 Emission Factors
TYPE Dairy Cow Dairy Heifer
Liquid Slurry/Pit Storage 0.177 0.072
Anaerobic Lagoon 0.544 0.221
 2010 2011 2012 2013 2014 2015
16,907 16,907 16,907 16,907 16,907 16,907
3,412 3,412 3,412 3,412 3,412 3,412
25% 25% 25% 25% 25% 25%
0.9 0.9 0.9 0.9 0.9 0.9
3,394 3,394 3,394 3,394 3,394 3,394
141 141 141 141 141 141
141 141 141 141 141 141
1,114,897 1,114,897 1,114,897 1,114,897 1,114,897 1,114,897

850,000 850,000 850,000 850,000 850,000 850,000

54,750 54,750 54,750 54,750 54,750 54,750
904,750 904,750 904,750 904,750 904,750 904,750
1,114,897 1,114,897 1,114,897 1,114,897 1,114,897 1,114,897
210,147 210,147 210,147 210,147 210,147 210,147
0.1200 0.1200 0.1200 0.1200 0.1200 0.1200
0.0700 0.0700 0.0700 0.0700 0.0700 0.0700
850,000 850,000 850,000 850,000 850,000 850,000
210,147 210,147 210,147 210,147 210,147 210,147
$102,000 $102,000 $102,000 $102,000 $102,000 $102,000
$14,710 $14,710 $14,710 $14,710 $14,710 $14,710
1 0 0 0 0 0
$99,102 $0 $0 $0 $0 $0

2 2 2 2 2 2
4,170 4,170 4,170 4,170 4,170 4,170
$ 8,340 $ 8,340 $ 8,340 $ 8,340 $ 8,340 $ 8,340

Thermal Conversion Efficiency 25%

kWhs/ MMBTU 73.27

Equiv Price With

Gas Price ($/MMBTU) Equivalent Generation Costs($/kwh)
2 0.02730 0.04230
2.5 0.03412 0.04912
3 0.04094 0.05594
3.5 0.04777 0.06277
4 0.05459 0.06959
4.5 0.06142 0.07642
5 0.06824 0.08324
5.5 0.07506 0.09006
6.00 0.08189 0.09689
6.5 0.08871 0.10371
7 0.09554 0.11054
7.5 0.10236 0.11736
8 0.10918 0.12418
 8.5 0.11601 0.13101
9 0.12283 0.13783
9.5 0.12966 0.14466
10 0.13648 0.15148

are based on CCX procedures and asssume

nte calculations are less than actual methane destruction.
sible to generate credits for renewable electricity as well.

in CCX materials
less separating before entry to traditional system, otheriwse use 80%
 2016 2017
16,907 16,907
3,412 3,412
25% 25%
0.9 0.9
3,394 3,394
141 141
141 141
1,114,897 1,114,897

850,000 850,000
54,750 54,750
904,750 904,750
1,114,897 1,114,897
210,147 210,147
0.1200 0.1200
0.0700 0.0700
850,000 850,000
210,147 210,147
$102,000 $102,000
$14,710 $14,710
0 0
$0 $0

2 2
4,170 4,170
$ 8,340 $ 8,340
CAN USE % OF CAPITAL OR BREAK OUT

Operating, Repairs, and Maintenance % of Capital 5.0%

Operating, Repairs, and Maintenance 47,013
property taxes -
Insurance -
Office -
Oil and Fuel -
Accounting and Legal -
Labor -
Total Expenses 47,013

Total Kwh's 1,114,897

cost per kwh 0.04
Year 2008 2009 2010 2011 2012 2013
Operating, Repairs, and Maintenance 47,013 47,013 47,013 47,013 47,013 47,013
property taxes - - - - - -
Insurance - - - - - -
Office - - - - - -
Oil and Fuel - - - - - -
Accounting and Legal - - - - - -
Labor - - - - - -
Total Expenses 47,013 47,013 47,013 47,013 47,013 47,013
 2014 2015 2016 2017
47,013 47,013 47,013 47,013
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
47,013 47,013 47,013 47,013
Financing Calculator
Percent Financing on Personal Property 65%
Personal Property Financing 209,580
Total Int. Term Financing 209,580
Term on Personal Property (years) 7
Rate on Personal Property (%) 8%
Payment ($40,254.57)
Year 2008 2009 2010 2011 2012
Interest -16,766 -14,887 -12,858 -10,666 -8,299
Principle -29,940 -29,940 -29,940 -29,940 -29,940
Balance 179,640 149,700 119,760 89,820 59,880

Percent Financing on Real Property 70%

Real Property (w/o Land) Financing 432,473
Land percent financed 80%
Land financing -
Total Long-Term Financing 432,473
Term on Long-Tem Financing 20
Rate on L.T. financing 8%
Payment ($44,048.36)
Year 2008 2009 2010 2011 2012
Interest -34,598 -33,842 -33,025 -32,143 -31,191
Principle -9,450 -10,207 -11,023 -11,905 -12,857
Balance 423,023 412,816 401,793 389,888 377,031

Project Costs $970,250

Discount Rate 10%
Debt to Asset ratio 66%
Debt $'s 642,053
Interest Expense 51,364
Blended Interest Rate 8%
 2013 2014 2015 2016 2017
-5,743 -2,982
-29,940 -29,940
29,940 0

2013 2014 2015 2016 2017

-30,162 -29,052 -27,852 -26,556 -25,157
-13,886 -14,997 -16,196 -17,492 -18,892
363,145 348,148 331,952 314,460 295,568
Income Statement Startup

Revenues 2008 2009 2010 2011

Energy sales to dairy $102,000 $102,000 $102,000 $102,000
Energy Sales to Grid $14,710 $14,710 $14,710 $14,710
Performance Incentive $99,102 $99,102 $99,102 $0
Tipping Fees Net of Disposal Costs $0 $0 $0 $0
Carbon Credits $8,340 $8,340 $8,340 $8,340

Gross Revenues $224,152 $224,152 $224,152 $125,050

Selling Expenses
Interconnect Charges
Total Selling Exp. $0 $0 $0 $0

Net Sales $224,152 $224,152 $224,152 $125,050

Operating Expenses
Grant -$70,706
O&M $47,013 $47,013 $47,013 $47,013
property taxes $0 $0 $0 $0
Insurance $0 $0 $0 $0
Office $0 $0 $0 $0
Oil and Fuel $0 $0 $0 $0
Accounting and Legal $0 $0 $0 $0
Labor $0 $0 $0 $0

Depreciation $69,244 $123,564 $97,645 $78,434

Interest $51,364 $48,729 $45,883 $42,810
Total Expenses $96,914 $219,305 $190,541 $168,257

Net Income $127,238 $4,846 $33,611 -$43,207

EBITDA $247,846 $177,139 $177,139 $78,037

Free Cash Flow $196,481 $128,410 $131,256 $35,228

Discount Rate 10%

PV $225,314 $146,396 $133,087 $53,301

Terminal Value Multiple 10

Terminal Value Multiple from Discount rate 10
Terminal Value on Calc Discount Rate $780,373
Time for Terminal Value 10
Discounted Terminal Value $300,868

NPV zero Terminal Value $ (180,014)

NPV with Terminal Value $90,767
IRR on all capital zero terminal value 4%
IRR with Terminal Value 12%
FCF to Initial Equity 60% 39% 40% 11%

ROE 39% 1% 7% -9%

ROA 18% 5% 7% 0%
Percent Equity 34% 41% 43% 47%

(970,250) $ 247,846 $ 177,139 $ 177,139 $ 78,037

-970250 $247,846 $177,139 $177,139 $78,037

 2012 2013 2014 2015 2016 2017
$102,000 $102,000 $102,000 $102,000 $102,000 $102,000
$14,710 $14,710 $14,710 $14,710 $14,710 $14,710
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$8,340 $8,340 $8,340 $8,340 $8,340 $8,340

$125,050 $125,050 $125,050 $125,050 $125,050 $125,050

$0 $0 $0 $0 $0 $0

$125,050 $125,050 $125,050 $125,050 $125,050 $125,050

$47,013 $47,013 $47,013 $47,013 $47,013 $47,013

$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
$0 $0 $0 $0 $0 $0

$64,089 $61,413 $58,992 $42,318 $27,567 $27,561

$39,490 $35,905 $32,033 $27,852 $26,556 $25,157
$150,592 $144,330 $138,038 $117,183 $101,136 $99,730

-$25,542 -$19,280 -$12,988 $7,867 $23,914 $25,320

$78,037 $78,037 $78,037 $78,037 $78,037 $78,037

$38,547 $42,132 $46,004 $50,185 $51,481 $52,881

$48,455 $44,050 $40,045 $36,405 $33,095 $30,087

 12% 13% 14% 15% 16% 16%

-6% -5% -3% 2% 6% 6%

1% 2% 2% 5% 7% 7%
46% 47% 48% 50% 53% 56%

$ 78,037 $ 78,037 $ 78,037 $ 78,037 $ 78,037 $ 78,037

$78,037 $78,037 $78,037 $78,037 $78,037 $780,373

Balance Sheet Initial Startup Operations Normal operating

Assets Dec-08 2009 2010

Current
Cash 30,000 18,362 18,362 18,362
free cash accumulation 196,481 285,501 376,610

Accts Rec. 12,282 12,282 12,282

Materials 2,576 2,576 2,576
Total Current Assets 30,000 229,701 318,721 409,831

PPE

Land - - - -
Plant and Equip 940,250 940,250 940,250 940,250
accum. Deprec. (69,244) (192,807) (290,452)
Net Land and Equip 940,250 $871,006 $747,443 $649,798

Total Assets 970,250 1,100,708 1,066,164 1,059,628

Liabilities and Equity

Current Liab
Accts Payable 3,220 3,220 3,220

Current Portion L.T. Debt 39,391 39,391 40,147 40,963

Total Current 39,391 42,611 43,367 44,183

Long Term Liabilities

Long-Term Debt 642,053 642,053 602,663 562,516
current portion -39,391 -39,391 -40,147 -40,963
Total Long Term Debt 602,663 602,663 562,516 521,553

Equity
Paid in Capital 328,197 328,197 328,197 328,197
Accumulated Earnings 127,238 132,084 165,695

Total Equity 328,197 455,434 460,281 493,892

Total Liabilities and Equity 970,250 1,100,708 1,066,164 1,059,628

 2011 2012 2013 2014 2015 2016 2017

18,362 18,362 18,362 18,362 18,362 18,362 18,362

370,875 367,577 366,912 369,090 374,339 409,623 445,012

12,282 12,282 12,282 12,282 12,282 12,282 12,282

2,576 2,576 2,576 2,576 2,576 2,576 2,576
404,095 400,797 400,132 402,310 407,559 442,843 478,232

- - - - - - -
940,250 940,250 940,250 940,250 940,250 940,250 940,250
(368,887) (432,976) (494,388) (553,380) (595,699) (623,266) (650,827)
$571,363 $507,274 $445,862 $386,870 $344,551 $316,984 $289,423
$78,434

975,458 908,072 845,994 789,180 752,110 759,828 767,655

3,220 3,220 3,220 3,220 3,220 3,220 3,220

41,845 42,797 43,826 44,937 16,196 17,492 18,892

45,065 46,017 47,046 48,157 19,417 20,712 22,112

521,553 479,708 436,911 393,085 348,148 331,952 314,460

-41,845 -42,797 -43,826 -44,937 -16,196 -17,492 -18,892
479,708 436,911 393,085 348,148 331,952 314,460 295,568

328,197 328,197 328,197 328,197 328,197 328,197 328,197

122,489 96,947 77,666 64,678 72,545 96,459 121,779

450,685 425,143 405,863 392,874 400,742 424,656 449,976

975,458 908,072 845,994 789,180 752,110 759,828 767,655

Cash Flows

2008 2009 2010

Paid In Capital (328,197)
Net Income 127,238 4,846 33,611
Depreciation and Amortizat 69,244 123,564 97,645

Operating Cash Flow (131,715) 128,410 131,256

Less Increases in WC
Capex

Total Free Cash Flow (131,715) 128,410 131,256

Less Principle Repayment -39,391 -40,147

Free Cash Flow to Equity (131,715) 89,020 91,109

IRR on Paid In Capital 13%

NPV (EQUITY) 18,278

(328,197) 196,481 89,020 91,109

178,619 73,570 68,452

 2011 2012 2013 2014 2015 2016 2017

-43,207 -25,542 -19,280 -12,988 7,867 23,914 25,320

78,434 64,089 61,413 58,992 42,318 27,567 27,561

35,228 38,547 42,132 46,004 50,185 51,481 52,881

35,228 38,547 42,132 46,004 50,185 51,481 52,881

-40,963 -41,845 -42,797 -43,826 -44,937 -16,196 -17,492

(5,735) (3,298) (665) 2,178 5,249 35,285 35,388

-5,735 -3,298 -665 2,178 5,249 35,285 35,388

(3,917) (2,048) (376) 1,118 2,449 14,964 13,644