Guide to COST-BENEFIT ANALYSIS of investment projects - Ramiri

Table 4.66 Economic analysis (thousands of Euros)CF 1 2 3 4 5 6 7 8 9 10Product A 1.000 0 1,200 1,800 3,060 4,766 4,934 5,108 5,287 5,473 5,665Product B 1.000 0 750 1,050 1,680 2,206 2,272 2,341 2,412 2,485 2,534Product C 1.000 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 0.950 0 2,108 3,241 5,646 13,455 16,631 17,051 17,482 17,925 18,366Labour 0.600 0 177 492 851 861 871 881 892 902 913Electricity 0.970 0 173 273 486 1,185 1,499 1,570 1,645 1,723 1,801Fuel 0.970 0 224 364 666 1,670 2,164 2,321 2,485 2,656 2,831Maintenance 1.000 0 131 201 350 833 1,030 1,056 1,082 1,110 1,137General industrial costs 1.000 0 124 181 297 666 772 739 704 666 625Administrative costs 1.000 0 126 187 315 722 858 845 830 814 796Sales expenditure 1.000 0 114 173 297 647 781 802 823 844 865TOTAL OPERATING COSTS 0 3,177 5,112 8,908 20,040 24,606 25,266 25,943 26,640 27,335RETIREMENT BONUS 1,000 0 0 0 0 0 0 0 0 0 0Land 1,235 3,705 0 0 0 0 0 0 0 0 0Buildings 0.715 4,290 4,290 3,575 0 0 0 0 0 0 0New Equipment 0.990 9,900 13,860 17,820 0 0 0 0 0 0 0Used Equipment 0,990 0 0 0 0 0 0 0 0 0 0Extraordinary Maintenance 0,756 0 0 0 0 0 0 0 0 0 0Fixed Assets 17,895 18,150 21,395 0 0 0 0 0 0 0Licenses 1.000 0 0 500 0 0 0 0 0 0 0Patents 1.000 0 0 500 0 0 0 0 0 0 0Other pre-prod. expenses 1.000 0 0 0 0 0 0 0 0 0 0Pre-production expenditure 0 0 1,000 0 0 0 0 0 0 0Investments costs 17,895 18,150 22,395 0 0 0 0 0 0 0Cash 1.000 50 125 90 90 90 90 90 90 90 90Client 1.000 110 460 600 600 600 600 600 600 600 600Stock 1.000 1,400 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000Current Liabilities 1.000 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 0Repl. of short-life equipment 0.756 0 0 0 0 0 181 318 408 224 392Residual value 0.928 0 0 0 0 0 0 0 0 0 -25,984Other investment items 0 0 0 0 0 181 318 408 224 -25,984TOTAL INVESTMENT COSTS 18,395 19,050 22,495 0 0 181 318 408 224 -25,424TOTAL EXPENDITURE 18,395 22,227 27,607 8,908 20,040 24,787 25,584 26,351 26,864 1,911NEGATIVE EXTERNALITIES 0 18 27 47 102 124 127 129 132 135TOTAL ECONOMICEXPENDITURES18,395 22,245 27,634 8,955 20,142 24,911 25,710 26,480 26,996 1,878NET ECONOMIC FLOW -18,395 -17,895 -20,944 2,697 7,629 9,414 9,483 9,603 10,000 36,029Discount Rate 5.5%ENPV 3,537.5ERR 6.7%B/C 1.02198