production capacity of the machine

Working hours in years

Construction of the house
update of all the costs
# of investment years (10 Years) China 10 Europe 20 years
Loan periods from CBO
Loan interest for Investment and Working capital
Goal seek
Projecting demand
Poulation of the zone
Use feasibility of Lentil
 Production capacity and utilization of the project for the first five year
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Raw material Volume (In quintals) 36,738.36 39,034.51 41,330.66 43,626.80 45,922.95 45,922.95 45,922.95 45,922.95 45,922.95 45,922.95
Impurity level for raw Niger seed in % 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05%
Impurity level for raw Niger seed in Quintals 18.36 19.51 20.66 21.80 22.95 22.95 22.95 22.95 22.95 22.95
Pure Raw material volume at max. capacity in Quintal 128520.00 136552.50 144585.00 152617.50 160650.00 160650.00 160650.00 160650.00 160650.00 160650.00
Capacity Utilization rate 80% 85% 90% 95% 100% 100% 100% 100% 100% 100%
Daily production capacity of the machine by two shift in liters 17,000.00 17,000.00 17,000.00 17,000.00 17,000.00 17,000.00 17,000.00 17,000.00 17,000.00 17,000.00
Nigeroilperkeg 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30
Niger seed oil produced per utilization rateperday 4,080.00 4,335.00 4,590.00 4,845.00 5,100.00 5,100.00 5,100.00 5,100.00 5,100.00 5,100.00
#ofworkingdaysinyear 270.00 270.00 270.00 270.00 270.00 270.00 270.00 270.00 270.00 270.00
Totaloilproducedinyear 1,101,600.00 1,170,450.00 1,239,300.00 1,308,150.00 1,377,000.00 1,377,000.00 1,377,000.00 1,377,000.00 1,377,000.00 1,377,000.00
OilextractedfromoneQuintal 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30
Raw Niger seed required in kg to extract oil as per machine utilization rate (2 shift) 3,672,000.00 3,901,500.00 4,131,000.00 4,360,500.00 4,590,000.00 4,590,000.00 4,590,000.00 4,590,000.00 4,590,000.00 4,590,000.00
Raw Niger seed required in Quintal to extract oil as per machine utilization rate (2 shift) 36,720.00 39,015.00 41,310.00 43,605.00 45,900.00 45,900.00 45,900.00 45,900.00 45,900.00 45,900.00
Average Niger cake production per quintal (pure) in 100kg 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7
Total niger cake production per annum 25,704.00 27,310.50 28917 30523.5 32,130.00 32,130.00 32,130.00 32130 32130 32,130.00
Processing capacityofthe Refineryfacctory 24hoursoperation 25ton /250Quintal 250
#of working days 270
Total # of quintals produced annaully at maximum capacity of the factory 67500
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Raw Niger seed requirement per utilization rate 67,500.00 67,500.00 67,500.00 67,500.00 67,500.00 67,500.00 67,500.00 67,500.00 67,500.00 67,500.00

Average Niger seed Edible oil extracted from cleaned raw Niger seed (in lit.) 30 30 30 30 30 30 30 30 30 30

Possibility of production @full capacity 2025000 2025000 2025000 2025000 2025000 2025000 2025000 2025000 2025000 2025000

Refinery plant utilization rate (16 Hours operation ) 85% 90% 95% 100% 100% 100% 100% 100% 100% 100%

Raw Niger seed requirement per utilization rate 57,375.00 60,750.00 64,125.00 67,500.00 67,500.00 67,500.00 67,500.00 67,500.00 67,500.00 67,500.00
Average Niger seed Edible oil extracted from cleaned raw Niger seed (in lit.) 30 30 30 30 30 30 30 30 30 30

Niger seed Edible oil production volume in Litters per year 1,721,250.00 1,822,500.00 1923750 2025000 2,025,000.00 2,025,000.00 2,025,000.00 2025000 2025000 2,025,000.00
Average Niger cake production per quintal (pure) in 100kg 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68

Total Niger cake production per annum 39,015.00 41,310.00 43,605.00 45,900.00 45,900.00 45,900.00 45,900.00 45,900.00 45,900.00 45,900.00
Needs update
 Man power required for Refinery factor operating with two shift s
Total number of
Req. No for 1 employee for #
S. Man Power shift # of shits (3) shits(2)
1 General Manager 1 1 1
2 Secretary 1 1 1
3 Shift managers 1 3 3
4 Market Officer 1 1 1
5 Operations Manager 1 3 3
6 Logistics Manager 1 3 3
7 Procurement 1 3 3
8 Store keeper 1 3 3
9 Production Manager 1 3 3
10 Quality control 1 3 3
11 Senior Machine Operators 1 3 3
12 Niger seed Oil Pressing Line operators 6 3 18
13 Niger seed Oil Refinery Line operators 6 3 18
14 Sanitary 1 3 3
15 Plastic injection and moulding operator 2 3 6
16 HR Head 1 1 1
17 Finance Head 1 1 1
18 Cost Accountant 1 3 3
19 Cashier 1 3 3
20 Guards 4 3 12
21 Cleaners 6 3 18
22 Business development specialist 1 1 1
23 Messenger 1 3 3
Sub total
Employee Benefits (20%)
Grand total salary
h two shift s

Monthly Salary Annual

10000.00 120000.00
2500.00 30000.00
4000.00 144000.00
5000.00 60000.00
7500.00 270000.00
7000.00 252000.00
4000.00 144000.00
4000.00 144000.00
7000.00 252000.00
7000.00 252000.00
5000.00 180000.00 250 270 67500
3000.00 648000.00
3000.00 648000.00
5000.00 180000.00
3500.00 252000.00
8500.00 102000.00
8500.00 102000.00
6500.00 234000.00
3500.00 126000.00
1200.00 172800.00
1200.00 259200.00
6000.00 72000.00
1200.00 43200.00
4,687,200.00
937,440.00
5,624,640.00
 Construction and civil works
SN Description Amount in Birr
1 Factory Building 1,000,000.00
2 Store Building 1: Raw materials & pre-processing 300,000.00
3 Store Building 2: finished goods 300,000.00
4 Office Building 200,000.00
5 Guard/Janitor/wash rooms 150,000.00
Total 1,950,000.00
 Pre-Operating Expenses
SN Descriptions Amount in Birr
1 Project management & license fees 150,000
2 Consultancy fees 500,000
3 Business Travel 200,000
4 Contingency for other outlays or costs 100,000
Total 950,000
 INITIAL INVESTMENT COST
SN Cost Items Local Cost Foreign Cost Total Cost Bank FCU Fixed capital Pre Investment Working capital
1 Land lease value 500,000.00 0 500,000.00 500,000.00 500,000.00
2 Building and Civil Work 1,950,000.00 0 1,950,000.00 1,950,000.00 1,950,000.00
Plant Machinery and
3 2,580,000.00 46,252,350 48,832,350.00
Equipment 46,252,350.00 2,580,000.00 48,832,350.00
Office Furniture and
4 200,000.00 0 200,000.00
Equipment 200,000.00 200,000.00
5 Computer and accessories 200,000.00 0 200,000.00 200,000.00 200,000.00
8 Pre-production Expenditure 950,000.00 0 950,000.00
950,000.00 51,682,350.00 950,000.00 15,000,000.00 67,632,350.00
9 Tota Fixed cost 6,380,000.00 46,252,350.00 52,632,350.00 46,252,350.00 6,380,000.00
10 52,632,350.00
11 Working Capital 15,000,000.00 15,000,000.00 15,000,000.00

Total Investment cost 67,632,350.00

46,252,350.00 21,380,000.00 67,632,350.00
68% 32%
For Working capital
Bank contribution 46,252,350.00
FCU contribution 21,380,000.00
Total investment 67,632,350.00
 SUMMARY OF PRODUCTION COSTS
SN Materials Year1 Year 2 year 3 year 4 year 5 year 6 Year7 Year8 Year9 Year10
1 Raw Niger seed
Requirement in Quintal 57,375 60,750 64,125 67,500 67,500 67,500 67,500 67,500 67,500 67,500
Purchase price including transportation cost 2,000 2040 2142 2249.1 2361.555 2479.63275 2603.6143875 2733.795106875 2870.484862219 3014.00910533
Subtotal Cost 1 114,750,000.00 123,930,000.00 137,355,750.00 151,814,250.00 159,404,962.50 167,375,210.62 175,743,971.16 184,531,169.71 193,757,728.20 203,445,614.61
2 Packing material
Edible oil produces in litters 1,101,600.00 1,170,450.00 1,239,300.00 1,308,150.00 1,377,000.00 1,377,000.00 1,377,000.00 1,377,000.00 1,377,000.00 1,377,000.00
Packing Bottles (PET) 3.50 Birr/lit. and lebelling
2Birr/lit. 1 lit. 3.50 3.68 3.86 4.05 4.25 4.47 4.69 4.92 5.17 5.43
Sub total cost 2 3,855,600.00 4,301,403.75 4,782,148.88 5,300,215.00 5,858,132.37 6,151,038.99 6,458,590.94 6,781,520.49 7,120,596.51 7,476,626.34
3 Electric cost and fuel
Edible oil produced in lit. 1,101,600.00 1,170,450.00 1,239,300.00 1,308,150.00 1,377,000.00 1,377,000.00 1,377,000.00 1,377,000.00 1,377,000.00 1,377,000.00
Cost per lit. 1.50 1.53 1.68 1.85 2.04 2.24 2.46 2.71 2.98 3.28
Sub total cost 3 1,652,400.00 1,790,788.50 2,085,741.90 2,421,778.10 2,804,164.11 3,084,580.52 3,393,038.57 3,732,342.43 4,105,576.67 4,516,134.34
4 Water cost 15,000 16500 18150 19965 21961.5 24157.65 26573.415 29230.7565 32153.83215 35369.215365
5 Cost of lubricants 62,000 68200 75020 82522 90774.2 99851.62 109836.782 120820.4602 132902.50622 146192.756842
6 Maintenance and repair cost 70,000 75600 81648 88179.84 95234.2272 102852.965376 111081.2026061 119967.6988146 129565.1147197 139930.3238973
Salry and benefits 5,624,640 5,905,872.00 6,201,165.60 6,511,223.88 6,836,785.07 7,178,624.33 7,537,555.54 7,914,433.32 8,310,154.99 8,725,662.74
promotion expense 42000.00 35000.00 30000.00 25000.00 20000.00 20000.00 20000.00 20000.00 20000.00 20000.00
Telephone cost 20,000 21000 22050 23152.5 24310.125 25525.63125 26801.9128125 28142.00845313 29549.10887578 31026.56431957
Business travel 150,000 165,000 181,500 199,650 219,615 241,577 265,734 292,308 321,538 353,692
Depreciation 2,724,118 2,724,118 2,724,118 2,724,118 2,724,118 2,724,118 2,724,118 2,724,118 2,724,118 2,724,118
Interest 5123177.49 5,123,177 5,123,177 5,123,177 5,123,177 5,123,177 5,123,177 5,123,177 5,123,177 5,123,177
Uniform for Employees 50,000 55000 60500 66550 73205 80525.5 88578.05 97435.855 107179.4405 117897.38455
Transportation cost (0.2 centes per litter) 220,320 234,090 247,860 261,630 275,400 275,400 275,400 275,400 275,400 275,400
Wastage cost per year. 36,720.00 39,795.30 44,243.01 49,036.00 54,197.69 56,907.57 59,752.95 62,740.60 65,877.63 69,171.51
Sub Total 4 14,137,974.99 14,463,352.29 14,809,431.60 15,174,204.21 15,558,777.80 15,952,716.75 16,368,608.99 16,807,773.25 17,271,615.93 17,761,637.63
Total Cost (Edible oil and niger cake production) 134,395,974.99 144,485,544.54 159,033,072.37 174,710,447.31 183,626,036.78 192,563,546.89 201,964,209.66 211,852,805.88 222,255,517.31 233,200,012.92
Cost share of niger seed Edible oil 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%
Cost allocated to edible oil 107,516,779.99 115,588,435.63 127,226,457.90 139,768,357.85 146,900,829.43 154,050,837.51 161,571,367.73 169,482,244.71 177,804,413.85 186,560,010.33
Edible oil produced in litters 1,721,250.00 1,822,500.00 1,923,750.00 2,025,000.00 2,025,000.00 2,025,000.00 2,025,000.00 2,025,000.00 2,025,000.00 2,025,000.00
Production cost per Litter 62.46 63.42 66.13 69.02 72.54 76.07 79.79 83.69 87.80 92.13
Cost share of Niger cake 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Cost allocated to Niger seed cake 26,879,195.00 28,897,108.91 31,806,614.47 34,942,089.46 36,725,207.36 38,512,709.38 40,392,841.93 42,370,561.18 44,451,103.46 46,640,002.58
Niger seed cake produced in Quintal 39,015.00 41,310.00 43,605.00 45,900.00 45,900.00 45,900.00 45,900.00 45,900.00 45,900.00 45,900.00
Production cost per quintal of Niger seed cake 688.95 699.52 729.43 761.27 800.11 839.06 880.02 923.11 968.43 1,016.12

Tota variable cost 120,258,000.00 130,022,192.25 144,223,640.78 159,536,243.10 168,067,258.98 176,610,830.14 185,595,600.67 195,045,032.63 204,983,901.38 215,438,375.29
Variable cost allocated for Niger seed edible oil 70% 70% 70% 70% 70% 70% 70% 70% 70% 70%
Variable cost for Edible oil in Birr 84,180,600.00 91,015,534.57 100,956,548.54 111,675,370.17 117,647,081.29 123,627,581.10 129,916,920.47 136,531,522.84 143,488,730.97 150,806,862.70
 Niger seed refineray plant costs
INVESTMENT ON PRODUCTION MACHINERIES AND EQUIPEMENT
Cost Amount
SN Description of the plant components
(in USD) (in Birr)
1 Total FOB at indian port 1,541,745 1,541,745.00 46252350.00
2 Up to Djibouti port 86,000.00 2,580,000.00
Total cost of the rifinery factory 1,627,745.00 48,832,350.00

The list of equpements from the supplier is attached on the annex

 Depreciation and Amortization Schedule
Description Rate per annum Value of fixed Asset Annual Depreciation
Construction & Civil Works 5% 1,950,000 97,500
Machineries & Equipment 5% 48,832,350 2,441,618
Office Furniture & Equipment 20% 200,000 40,000
Computer & Accessories 25% 200,000 50,000
Pre-operating Expenses 10% 950,000 95,000
Total 52,132,350 2,724,118
 Haragu farmers cooperative union Niger seed oil refinery plant

Years Rate Periods per year Total periods Period rate

10 16.5% 1 10 16.5%
Interest calculated for 46,252,350.00 loan received for ten years annual payment repayment
@rate of 16.5%
Period PMT Interest paid Principal paid Balance
0 46,252,350.00
1 $9,748,412.49 $7,631,637.75 $2,116,774.74 $44,135,575.26
2 $9,748,412.49 $7,282,369.92 $2,466,042.57 $41,669,532.69
3 $9,748,412.49 $6,875,472.89 $2,872,939.59 $38,796,593.10
4 $9,748,412.49 $6,401,437.86 $3,346,974.62 $35,449,618.48
5 $9,748,412.49 $5,849,187.05 $3,899,225.44 $31,550,393.04
6 $9,748,412.49 $5,205,814.85 $4,542,597.64 $27,007,795.40
7 $9,748,412.49 $4,456,286.24 $5,292,126.25 $21,715,669.16
8 $9,748,412.49 $3,583,085.41 $6,165,327.08 $15,550,342.08
9 $9,748,412.49 $2,565,806.44 $7,182,606.04 $8,367,736.04
10 $9,748,412.49 $1,380,676.45 $8,367,736.04 $0.00
Total $51,231,774.87 $46,252,350.00
$5,123,177.49

Yearly
$14,871,589.97
payment
Interst $5,123,177.49
Table 19: Estimated budget of promotion/advertising for the first five years

Promotion Type Year 1 Year 2 Year 3 Year 4 Year 5

Flyers and Broshers 37,000 30,000 25,000 20,000 15,000

Networking activities 5,000 5,000 5,000 5,000 5,000

Total 42,000 35,000 30,000 25,000 20,000
 Projected Income statement for five years’ period
Yearly Edible oil production in litters Year 1 Year 2 Year 3 Year 4 Year 5 Year 5 Year 5 Year 5 Year 5 Year 5
Niger seed edible oil production in litters 1,721,250.0 1,822,500.0 1,923,750.0 2,025,000.0 2,025,000.0 2,025,000.0 2,025,000.0 2,025,000.0 2,025,000.0 2,025,000.0
Unit sales price 74.5 75.4 78.1 81.0 84.5 88.1 91.8 95.7 99.8 104.1
Total Revenue from Edible oil 128,171,780.0 137,458,435.6 150,311,457.9 164,068,357.8 171,200,829.4 178,350,837.5 185,871,367.7 193,782,244.7 202,104,413.8 210,860,010.3
Production of Niger seed cake 39,015.0 41,310.0 43,605.0 45,900.0 45,900.0 45,900.0 45,900.0 45,900.0 45,900.0 45,900.0
Unit sales price 813.9 824.5 854.4 886.3 925.1 964.1 1,005.0 1,048.1 1,093.4 1,141.1
Total revenue fromNigerseedcake 31,756,070.0 34,060,858.9 37,257,239.5 40,679,589.5 42,462,707.4 44,250,209.4 46,130,341.9 48,108,061.2 50,188,603.5 52,377,502.6
Income from Niger seedoil operation 159,927,850.0 171,519,294.5 187,568,697.4 204,747,947.3 213,663,536.8 222,601,046.9 232,001,709.7 241,890,305.9 252,293,017.3 263,237,512.9
Total cost of Refinery plant operation 134,395,975.0 144,485,544.5 159,033,072.4 174,710,447.3 183,626,036.8 192,563,546.9 201,964,209.7 211,852,805.9 222,255,517.3 233,200,012.9
Income from Niger seedoil operation 25,531,875.0 27,033,750.0 28,535,625.0 30,037,500.0 30,037,500.0 30,037,500.0 30,037,500.0 30,037,500.0 30,037,500.0 30,037,500.0

25,531,875.00 52,565,625.00 81,101,250.00 111,138,750.00 141,176,250.00 30,375,000.00 30,375,000.00 30,375,000.00 30,375,000.00 30,375,000.00
 HARAGU FARMERS COOPERATIVE UNION NIGER SEED EDIBLE OIL EXTRACTION AND SEMI-REFINERY PLANT ESTABLISHEMENT PROJECT
Description Year 0 year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year 10
1.Cash flow
Union contribution 21,380,000.00
Loan inflow 46,252,350.00
Net income 0.00 25,531,875.00 27,033,750.00 28,535,625.00 30,037,500.00 30,037,500.00 30,037,500.00 30,037,500.00 30,037,500.00 30,037,500.00 30,037,500.00
Total cash inflow 67,632,350.00 25,531,875.00 27,033,750.00 28,535,625.00 30,037,500.00 30,037,500.00 30,037,500.00 30,037,500.00 30,037,500.00 30,037,500.00 30,037,500.00
2. Cash out flow
Fixed investment 51,682,350.00
Pre production expense 950,000.00
Initial working capital 15,000,000.00
Principal payment 0.00 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49
Total cash out flow 67,632,350.00 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49 9,748,412.49

Net cash flows 0.00 15,783,462.51 17,285,337.51 18,787,212.51 20,289,087.51 20,289,087.51 20,289,087.51 20,289,087.51 20,289,087.51 20,289,087.51 20,289,087.51
 Net present value of Niger seed Edible oil extraction and refinery plant
Yearly Cash flows Presene value Sum of Pv Discounting rate
0 -67,632,350.00 (67,632,350.00)
1 15,783,462.51 13,044,183.90 13,044,183.90
2 17,285,337.51 11,806,118.10 24,850,302.00
3 18,787,212.51 10,604,891.68 35,455,193.68
4 20,289,087.51 9,465,009.06 44,920,202.74
5 20,289,087.51 7,822,321.54 52,742,524.28
6 20,289,087.51 6,464,728.54 59,207,252.83
7 20,289,087.51 5,342,750.86 64,550,003.69
8 20,289,087.51 4,415,496.58 68,965,500.27
9 20,289,087.51 3,649,170.73 72,614,671.00
10 20,289,087.51 3,015,843.58 75,630,514.58
Net present value 7,998,164.58
IRR 10.8646017%

25,200,000
2.09
21%
 IRR calculation of the project
Yearly Cash flows Presene value
0 -67,632,350.00 (67,632,350.00)
1 15,783,462.51 13,044,183.90
2 17,285,337.51 11,806,118.10
3 18,787,212.51 10,604,891.68
4 20,289,087.51 9,465,009.06
5 20,289,087.51 7,822,321.54
6 20,289,087.51 6,464,728.54
7 20,289,087.51 5,342,750.86
8 20,289,087.51 4,415,496.58
9 20,289,087.51 3,649,170.73
10 20,289,087.51 3,015,843.58
Net present value 7,998,164.58
Npv by Function 7,998,164.58
IRR calculation 11%
Interest 21%

Check
 Cumulative balance
Year Cash flow Discounted Cash flow
discounted cash flow
1 15,783,463 13,044,184 13,044,184
2 17,285,338 11,806,118 24,850,302
3 18,787,213 10,604,892 35,455,194
4 20,289,088 9,465,009 44,920,203
5 20,289,088 7,822,322 52,742,524
6 20,289,088 6,464,729 59,207,253
7 20,289,088 5,342,751 64,550,004
8 20,289,088 4,415,497 68,965,500
9 20,289,088 3,649,171 72,614,671
10 20,289,088 3,015,844 75,630,515
TRUE