Guide to COST-BENEFIT ANALYSIS of investment projects - Ramiri

Table 4.62 Financial return on investment (thousands of Euros)1 2 3 4 5 6 7 8 9 10Product A 0 1,200 1,800 3,060 4,766 4,934 5,108 5,287 5,473 5,665Product B 0 750 1,050 1,680 2,206 2,272 2,341 2,412 2,485 2,534Product C 0 2,400 3,840 6,912 20,798 27,119 27,744 28,384 29,038 29,708SALES 0 4,350 6,690 11,652 27,770 34,325 35,193 36,083 36,996 37,907Raw materials 0 2,219 3,412 5,943 14,163 17,506 17,948 18,402 18,868 19,333Labour 0 295 820 1,418 1,435 1,452 1,469 1,486 1,504 1,522Electricity 0 178 281 501 1,222 1,545 1,619 1,696 1,776 1,857Fuel 0 231 375 687 1,722 2,231 2,393 2,562 2,738 2,919Maintenance 0 131 201 350 833 1,030 1,056 1,082 1,110 1,137General industrial costs 0 124 181 297 666 772 739 704 666 625Administrative costs 0 126 187 315 722 858 845 830 814 796Sales expenditure 0 114 173 297 647 781 802 823 844 865TOTAL OPERATING COSTS 0 3,418 5,630 9,808 21,410 26,175 26,871 27,585 28,320 29,054RETIREMENT BONUS 0 0 0 0 0 0 0 0 0 0Land 3,000 0 0 0 0 0 0 0 0 0Buildings 6,000 6,000 5,000 0 0 0 0 0 0 0New Equipment 10,000 14,000 18,000 0 0 0 0 0 0 0Used Equipment 0 0 0 0 0 0 0 0 0 0Extraordinary Maintenance 0 0 0 0 0 0 0 0 0 0FIXED ASSETS 19,000 20,000 23,000 0 0 0 0 0 0 0Licenses 0 0 500 0 0 0 0 0 0 0Patents 0 0 500 0 0 0 0 0 0 0Other pre-production expenses 0 0 0 0 0 0 0 0 0 0PRE-PRODUCTION EXPENDITURE 0 0 1,000 0 0 0 0 0 0 0Investments costs 19,000 20,000 24,000 0 0 0 0 0 0 0Cash 50 125 90 90 90 90 90 90 90 90Client 110 460 600 600 600 600 600 600 600 600Stock 1,400 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000Current Liabilities 1,060 1,185 1,190 1,190 1,190 1,190 1,190 1,190 1,190 1,190Net working capital 500 1,400 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500Variations in working capital 500 900 100 0 0 0 0 0 0 0Replacement of short-life equipment 0 0 0 0 0 240 420 540 296 518Residual value 0 0 0 0 0 0 0 0 0 -28,000Other investment items 0 0 0 0 0 240 420 540 296 -27,482TOTAL INVESTMENT COSTS 19,500 20,900 24,100 0 0 240 420 540 296 -27,482TOTAL EXPENDITURE 19,500 24,318 29,730 9,808 21,410 26,415 27,291 28,125 28,616 1,572NET CASH FLOW -19,500 -19,968 -23,040 1,844 6,360 7,910 7,902 7,958 8,380 36,335Discount Rate 5.0%FNPV (C) -5,472.5FRR (C) 3.3%194