(GP/GT) for Additional Water Supply in the Lower Rio Grande

Other Capital Equipment
YlETAL BUILDI?\G: Estimated costs for a metal building to
include office space and a headhouse area is is included.
OFFICE EQUIP~[E~T: It is assumed that office equipment
includes a copier, computer, software, timeclock, and other
miscellaneous supplies.
PLAl."l'T COOLING STORAGE 'UNIT: The use of a storage unit to
refrigerate or cool flowers is assumed.
DELIVER Y VEHICLE: The use of a van for local pick-up and
deli very purposes is assumed.
MISCELLANEOUS: An additional allowance for miscellaneous
items not included elsewhere is assumed.
SECTION 3. OPERATING BUDGET CASH FLOW
The third section shows a projected cash flow on a yearly basis
for the first ten years of greenhouse operation. It is anticipated that
it will take approximately five months to construct the greenhouse,
another month to plant the roses, and an additional six to seven
months before the rose plants are expected to produce saleable
blooms.
Sales
SALES VOLUME: The volume of roses sold is calculated by
subtracting the production losses from the blooms sold per year (see
Assumptions).
SALES PRICE: The average bloom selling price is obtained from
Assumptions.
SALES REVE~E: Sales revenue is calculated by multiplying
the sales volume by the selling price. No sales occur in the first year.
and no revenue is expected until year two.
Outlay for Production
Operating costs are typically separated into fixed and variable
categories. However. annual rose production is basically constant.
That is. the same number of rose plants yield approximately the
same number of roses every year. and the operating requirements
F-16