Feasibility Assessment Template

Developed for: Ag Marketing Resource Center

Developed by: Phil Kenkel and Rodney Holcomb, Oklahoma State University

This templates is designed to assist you in assessing the feasibility of a project

Input cells are shaded in blue.
Each sheet is currently protected allowing you to only input information in the input cells.
The template can also be modified and expanded to meet your particular situation by turnin
If you choose to modify the template we would advise you to save it under another name a

To get started go to the "Input Page"

For comments or suggestions contact: Phil Kenkel, kenkel@okstate.edu 405-744-9818'

Rodney Holcomb, holcorb@okstate.edu 405-744-6272

For a Guide to Using the Feasibility Template Click On the Icon Below
Template Guide MENU
FORWARD TO INPUTS

Acrobat Document
State University

f a project

on in the input cells.

ular situation by turning off the protection.
nder another name and retain the original for reference.

n the Icon Below

INPUT CAPITAL STRUCTURE AND INPUT PRODUCTS, INITIAL VOLUME, MARGIN PE
EXPENSE INFORMATION ANTICIPATED SALES GROWTH RATE
Percent Financed 50.00% Product Name Fertilizer
Long Term Interest Rate 8.00% Units tons
Loan Term 10 Initial Volume 20,000
Total Plant Property & Equip $1,245,000 Sales growth 1%
Loan Amount $622,500 Price/unit $230.00
Working Capital $112,000
Short Term Interest Rate 7.00% Product Name C
Units lbs
Equity Information Initial Volume 0
Common stock $522,500 Sales growth 0%
Tradeable common stock (1=yes) 0 Price/unit $-
Revolving period (years) 7
Dividend rate on common 8.0% Percent Member Business
Prefered Stock $100,000 VARIABLE COST OF PRODUCTION PER UNIT
Dividend Rate on Preferred Stock 12.0% Product Unit
Fertilizer tons
Feed tons
Tax Information C lbs
Property Tax as % of Prop and Plant 0.50% D lbs
Income Tax Rate 50.00%
There are also inputs on the "Personnel Expense", "De

Payroll Information MENU

% of Payroll Tax to Salaries 5.00% FORWARD TO PERSONNEL EXPENSE
% of Retirement Tax to Salaries 15.00% FORWARD TO DEPRECIATION
% of Employee INS Tax to Salaries 10.00% FORWARD TO EXPENSE PROJECTION
Benefits as % of Salaries 30.00% FORWARD TO OPERATIONS SUMMARY
Wage Inflation 1.00% FORWARD TO RETURN ON INVESTMENT
BACK TO INTRODUCTION
Utilities
Electricity/month $1,000
Water/month $250
Gas/month $1,000
Telephone/month $200
Total Utilities $2,450

Other
Expense Inflation Rate 1.00%
Maintenance as % of Plant & Equip 3.00%
Insurance as % of Plant & Equip 2.00%
Discount rate for NPV calculation 12.00%

Profit Allocation
(all percentages relate to before tax income)
Percentage to Unallocated Reserve 5%
Percentage to Cash Patronage Refund 25%
Percentage to Qualified Stock Patraonage Refund 35%
Percentage to Non-Qualifited Stock Patronage Refund 35%
AL VOLUME, MARGIN PER UNIT AND
ROWTH RATE
Product Name Feed
Units tons
Initial Volume 5,000
Sales growth 1%
Price/unit $200.00

Product Name D
Units lbs
Initial Volume 0
Sales growth 0%
Price/unit $-

100%
ODUCTION PER UNIT
VC/unit
$200.00
$180.00
$-
$-

sonnel Expense", "Depreciation", & "Expense Projection" sheets

NEL EXPENSE
ATION
E PROJECTION
ONS SUMMARY
ON INVESTMENT
N
Depreciation Return On Investment

Quality Percent 0%
Discount Rate 0.00%
MENU
BACK TO INPUTS
FORWARD TO RETURN ON INVESTMENT
FORWARD TO OPERATIONS SUMMARY
Sales Projections
Year 1 Year 2 Year 3 Year 4 Year 5
Fertilizer tons 20,000 20,200 20,402 20,606 20,812
Feed tons 5,000 5,050 5,101 5,152 5,203
C lbs 0 0 0 0 0
D lbs 0 0 0 0 0
25,000 25,250 25,503 25,758 26,015
Gross Sales Projection
This sheet summaries the volume and price and sales growth information from the input page. There is no input on th

Year 1 Year 2 Year 3 Year 4 Year 5

Fertilizer
Total Volume 20,000 20,200 20,402 20,606 20,812
Price/Unit $230.00 $230.00 $230.00 $230.00 $230.00
Gross Sales $4,600,000 $4,646,000 $4,692,460 $4,739,385 $4,786,778

Feed
Total Volume 5,000 5,050 5,101 5,152 5,203
Price/Unit $200.000 $200.000 $200.000 $200.000 $200.000
Gross Sales $1,000,000 $1,010,000 $1,020,100 $1,030,301 $1,040,604

C
Total Volume 0 0 0 0 0
Price/Unit $0.00 $0.00 $0.00 $0.00 $0.00
Gross Sales $0 $0 $0 $0 $0

D
Total Volume 0 0 0 0 0
Price/Unit $0.00 $0.00 $0.00 $0.00 $0.00
Gross Sales $0 $0 $0 $0 $0

TOTAL GROSS SALES $5,600,000 $5,656,000 $5,712,560 $5,769,686 $5,827,382

Production Expense
Fertilizer $4,000,000 $4,040,000 $4,080,400 $4,121,204 $4,162,416
Feed $900,000 $909,000 $918,090 $927,271 $936,544
C $- $- $- $- $-
D $- $- $- $- $-
TOTAL VARIABLE EXP. $4,900,000 $4,949,000 $4,998,490 $5,048,475 $5,098,960
 Year 6 Year 7 Year 8 Year 9 Year 10
21,020 21,230 21,443 21,657 21,874
5,255 5,308 5,361 5,414 5,468
0 0 0 0 0
0 0 0 0 0
26,275 26,538 26,803 27,071 27,342

ut page. There is no input on this page.

Year 6 Year 7 Year 8 Year 9 Year 10

21,020 21,230 21,443 21,657 21,874

$230.00 $230.00 $230.00 $230.00 $230.00
$4,834,646 $4,882,993 $4,931,823 $4,981,141 $5,030,952

5,255 5,308 5,361 5,414 5,468

$200.000 $200.000 $200.000 $200.000 $200.000
$1,051,010 $1,061,520 $1,072,135 $1,082,857 $1,093,685

0 0 0 0 0
$0.00 $0.00 $0.00 $0.00 $0.00
$0 $0 $0 $0 $0

0 0 0 0 0
$0.00 $0.00 $0.00 $0.00 $0.00
$0 $0 $0 $0 $0

$5,885,656 $5,944,513 $6,003,958 $6,063,998 $6,124,638

$4,204,040 $4,246,081 $4,288,541 $4,331,427 ###

$945,909 $955,368 $964,922 $974,571 $984,317
$- $- $- $- $-
$- $- $- $- $-
$5,149,949 $5,201,449 $5,253,463 $5,305,998 ###
MENU
BACK TO INPUTS
FORWARD TO RETURN ON INVESTMENT
FORWARD TO OPERATIONS SUMMARY

This sheet calculates loan amortization and interest. There are no inputs on this sheet.

Total Investment $1,245,000

Long Term Interest Rate 8.00%
Percent Financed 50.00%
Loan Amount $622,500
Loan Term 10

Year 1 Year 2 Year 3 Year 4 Year 5

Beginning Balance $622,500 $579,529 $533,121 $482,999 $428,869
Interest Rate 8.00% 8.00% 8.00% 8.00% 8.00%
Interest $49,800 $46,362 $42,650 $38,640 $34,309

Annual Payment $92,771 $92,771 $92,771 $92,771 $92,771

Principal $42,971 $46,409 $50,121 $54,131 $58,461

Ending Balance $579,529 $533,121 $482,999 $428,869 $370,407

Working Capital $112,000

Short Term Interest Rate 7.00%
Interest Amount $7,840

Total Interest Expense $57,640 $54,202 $50,490 $46,480 $42,149

Year 6 Year 7 Year 8 Year 9 Year 10
$370,407 $307,269 $239,079 $165,435 $85,899
8.00% 8.00% 8.00% 8.00% 8.00%
$29,633 $24,582 $19,126 $13,235 $6,872

$92,771 $92,771 $92,771 $92,771 $92,771

$63,138 $68,189 $73,644 $79,536 $85,899

$307,269 $239,079 $165,435 $85,899 $0

$37,473 $32,422 $26,966 $21,075 $14,712

MENU
BACK TO INPUTS
FORWARD TO RETURN ON INVESTMENT
FORWARD TO OPERATIONS SUMMARY

This sheet allows you to input salaries and overtime assumptions for various positions.
Benefit calculations are based on the percentage you entered on the "Input" sheet.

Occupation Salary Benefits Overtime% Overtime Total

Position #1 $60,000 $18,000 5% $3,900 $81,900

Position #2 $40,000 $12,000 5% $2,600 $54,600

Position #3 $25,000 $7,500 0% $- $32,500

Position #4 $25,000 $7,500 0% $- $32,500

Total Personnel $150,000 $45,000 $6,500 $201,500

Costs
MENU
BACK TO INPUTS
FORWARD TO RETURN ON INVESTMENT
FORWARD TO OPERATIONS SUMMARY

This Sheet summaries expenses. The only input is for "supplies and miscellaneous" expenses.

Labor Year 0 Year 1 Year 2 Year 3 Year 4

Salaries $150,000 $151,500 $153,015 $154,545
Benefits $45,000 $45,450 $45,905 $46,364
Overtime $6,500 $6,565 $6,631 $6,697

Total Labor $- $201,500 $203,515 $205,550 $207,606

Production Expenses $4,900,000 $4,949,000 $4,998,490 $5,048,475

Utilities $29,400 $29,694 $29,991 $30,291

Total Variable $- $5,130,900 $5,182,209 $5,234,031 $5,286,371

Fixed
Maintenance $37,350 $37,724 $38,101 $38,482

Insurance $24,900 $25,149 $25,400 $25,654

Property Tax $6,225 $6,287 $6,350 $6,414

Depreciation $59,881 $83,901 $67,281 $55,629

Interest $57,640 $54,202 $50,490 $46,480

Total Fixed $- $185,996 $207,263 $187,622 $172,659

Other
Supplies $25,000 $10,000 $10,100 $10,201 $10,303

Miscellaneous* $40,000 $20,000 $20,200 $20,402 $20,606

Total Other $65,000 $30,000 $30,300 $30,603 $30,909

Income Taxes $66,761 $66,734 $71,078 $75,397

Total Expenses $65,000 $5,413,657 $5,486,506 $5,523,334 $5,565,336

* Year 0 miscellaneous expenses may include legal fees, licenses, permits and other organizational expenses.
us" expenses.

Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

$156,091 $157,652 $159,228 $160,820 $162,429 $164,053
$46,827 $47,295 $47,768 $48,246 $48,729 $49,216
$6,764 $6,832 $6,900 $6,969 $7,039 $7,109

$209,682 $211,779 $213,896 $216,035 $218,196 $220,378

$5,098,960 $5,149,949 $5,201,449 $5,253,463 $5,305,998 $5,359,058

$30,594 $30,900 $31,209 $31,521 $31,836 $32,154

$5,339,235 $5,392,627 $5,446,554 $5,501,019 $5,556,029 $5,611,590

$38,867 $39,255 $39,648 $40,044 $40,445 $40,849

$25,911 $26,170 $26,432 $26,696 $26,963 $27,233

$6,478 $6,543 $6,608 $6,674 $6,741 $6,808

$48,153 $47,268 $46,425 $37,038 $27,672 $27,672

$42,149 $37,473 $32,422 $26,966 $21,075 $14,712

$161,558 $156,708 $151,534 $137,419 $122,895 $117,274

$10,406 $10,510 $10,615 $10,721 $10,829 $10,937

$20,812 $21,020 $21,230 $21,443 $21,657 $21,874

$31,218 $31,530 $31,846 $32,164 $32,486 $32,811

$78,825 $80,954 $83,057 $39,550 $45,963 $44,476

$5,610,836 $5,661,820 $5,712,990 $5,710,152 $5,757,374 $5,806,150

her organizational expenses.

0.00%

0.00%
MENU
BACK TO INPUTS
FORWARD TO RETURN ON INVESTMENT

This sheet summaries income, expenses and net profit. There are no inputs on this sheet

Gross Sales
Year 0 Year 1 Year 2 Year 3 Year 4
Fertilizer $0 $4,600,000 $4,646,000 $4,692,460 $4,739,385
Feed $0 $1,000,000 $1,010,000 $1,020,100 $1,030,301
C $0 $0 $0 $0 $0
D $0 $0 $0 $0 $0

Total $0 $5,600,000 $5,656,000 $5,712,560 $5,769,686

Expenses
Variable $0 $5,130,900 $5,182,209 $5,234,031 $5,286,371
Fixed $0 $185,996 $207,263 $187,622 $172,659
Other $65,000 $30,000 $30,300 $30,603 $30,909

Total Expenses $65,000 $5,346,896 $5,419,772 $5,452,256 $5,489,939

EBIT ($65,000) $256,944 $225,469 $247,403 $261,399

Profit before Patronage ($65,000) $199,304 $171,267 $196,913 $214,919

Cash Patronage Refund $49,826 $42,817 $49,228 $53,730
Qualified Patronage Refund $69,756 $59,943 $68,920 $75,222
Non-Qualified Redeemed $0 $0 $0 $0
Before Tax Income $133,522 $133,468 $142,156 $150,795
Tax $- $66,761 $66,734 $71,078 $75,397

After Tax Profit ($65,000) $66,761 $66,734 $71,078 $75,397

Estimate of Cash Flows

Year 0 Year 1 Year 2 Year 3 Year 4
After Tax Profits $(65,000.00) $66,761 $66,734 $71,078 $75,397
Depreciation $- $59,881 $83,901 $67,281 $55,629
Principle $- $42,971 $46,409 $50,121 $54,131
Additional Asset Purchased $- $- $- $-
Common stock div $41,800 $52,961 $51,391 $52,827
Prefered dividend $12,000 $12,000 $12,000 $12,000
Gross Cash Flow from Operations $196,398 $210,578 $207,279 $206,248
Common stock redemption $- $- $- $-
Qualified Redemption $- $- $- $-
Non-Qualified Redemption $- $- $- $-
Cash Flow $(65,000) $99,627 $99,209 $93,766 $87,290
Cumulative Cash Flow $34,627 $133,836 $227,602 $314,892
(does not consider increases or decreases in working capital loan)
 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
$4,786,778 $4,834,646 $4,882,993 $4,931,823 $4,981,141 $5,030,952
$1,040,604 $1,051,010 $1,061,520 $1,072,135 $1,082,857 $1,093,685
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0

$5,827,382 $5,885,656 $5,944,513 $6,003,958 $6,063,998 $6,124,638

$5,339,235 $5,392,627 $5,446,554 $5,501,019 $5,556,029 $5,611,590

$161,558 $156,708 $151,534 $137,419 $122,895 $117,274
$31,218 $31,530 $31,846 $32,164 $32,486 $32,811

$5,532,011 $5,580,866 $5,629,933 $5,670,602 $5,711,410 $5,761,674

$271,686 $275,609 $279,865 $334,466 $355,603 $356,533

$229,536 $238,136 $247,444 $307,499 $334,528 $341,821

$57,384 $59,534 $61,861 $76,875 $83,632 $85,455
$80,338 $83,348 $86,605 $107,625 $117,085 $119,637
$0 $0 $0 $69,756 $59,943 $68,920
$157,650 $161,909 $166,113 $79,100 $91,927 $88,951
$78,825 $80,954 $83,057 $39,550 $45,963 $44,476

$78,825 $80,954 $83,057 $39,550 $45,963 $44,476

Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

$78,825 $80,954 $83,057 $39,550 $45,963 $44,476
$48,153 $47,268 $46,425 $37,038 $27,672 $27,672
$58,461 $63,138 $68,189 $73,644 $79,536 $85,899
$- $- $- $- $- $-
$53,835 $54,654 $55,136 $13,857 $6,059 $9,143
$12,000 $12,000 $12,000 $12,000 $12,000 $12,000
$207,315 $211,570 $216,087 $184,213 $190,720 $191,785
$- $- $522,500 $- $- $-
$- $- $- $69,756 $59,943 $68,920
$- $- $- $69,756 $59,943 $68,920
$83,019 $81,777 $(441,738) $14,955 $33,182 $15,824
$397,911 $479,688 $37,950 $52,905 $86,086 $101,910
Average EBIT
$286,498
This Sheet Summaries The Changes in Owner's Equity. There are no inputs on this page
Year 0 Year 1 Year 2 Year 3
Common Stock $522,500 $522,500 $522,500 $522,500
Qualified Stock Credits $- $69,756 $59,943 $68,920
Non Qualified Stock Credits $- $69,756 $59,943 $68,920
Preferred Stock $100,000 $100,000 $100,000 $100,000
Unallocated Equity $9,965 $18,529 $28,374

Total Members Equity $622,500 $771,978 $760,916 $788,713

Equity Calculations
Common Stock $522,500
Common Stock Redeemed 0 0 0
Total Common Stock $522,500 $522,500 $522,500 $522,500

Qualified Stock Credits Issued $69,756 $59,943 $68,920

Qualified Stock Credits Redeemed 1 yr rev $- $-
Qualified Stock Credits Redeemed 2 yr rev $-
Qualified Stock Credits Redeemed 3 yr rev
Qualified Stock Credits Redeemed 4 yr rev
Qualified Stock Credits Redeemed 5 yr rev
Qualified Stock Credits Redeemed 6 yr rev
Qualified Stock Credits Redeemed 7 yr rev
Qualified Stock Credits Redeemed 8 yr rev
Qualified Stock Credits Redeemed 9 yr rev
Qualified Stock Credits Redeemed 10 yr rev
Total Qualified Redeemed $- $- $-
Total Qualified Stock Credits $69,756 $59,943 $68,920

Non-Qualified Stock Credits Issued $69,756 $59,943 $68,920

Non-Qualified Stock Credits Redeemed 1 yr rev $- $-
Non-Qualified Stock Credits Redeemed 2 yr rev $-
Non-Qualified Stock Credits Redeemed 3 yr rev
Non-Qualified Stock Credits Redeemed 4 yr rev
Non-Qualified Stock Credits Redeemed 5 yr rev
Non-Qualified Stock Credits Redeemed 6 yr rev
Non-Qualified Stock Credits Redeemed 7 yr rev
Non-Qualified Stock Credits Redeemed 8 yr rev
Non-Qualified Stock Credits Redeemed 9 yr rev
Non-Qualified Stock Credits Redeemed 10 yr rev
Total Non-Qualified Redeemed $- $- $-
Total Non-Qualified Stock Credits $69,756 $59,943 $68,920
 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
$522,500 $522,500 $522,500 $- $- $- $-
$75,222 $80,338 $83,348 $86,605 $37,868 $57,141 $50,718
$75,222 $80,338 $83,348 $86,605 $37,868 $57,141 $50,718
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$39,120 $50,597 $62,504 $74,876 $90,251 $106,977 $124,068

$812,064 $833,772 $851,699 $348,087 $265,987 $321,260 $325,504

0 0 0 522500 0 0 0
$522,500 $522,500 $522,500 $0 $0 $0 $0

$75,222 $80,338 $83,348 $86,605 $107,625 $117,085 $119,637

$- $- $- $- $- $- $-
$- $- $- $- $- $- $-
$- $- $- $- $- $- $-
$- $- $- $- $- $-
$- $- $- $- $-
$- $- $- $-
$69,756 $59,943 $68,920
$- $-
$-

$- $- $- $- $69,756 $59,943 $68,920

$75,222 $80,338 $83,348 $86,605 $37,868 $57,141 $50,718

$75,222 $80,338 $83,348 $86,605 $107,625 $117,085 $119,637

$- $- $- $- $- $- $-
$- $- $- $- $- $- $-
$- $- $- $- $- $- $-
$- $- $- $- $- $-
$- $- $- $- $-
$- $- $- $-
$69,756 $59,943 $68,920
$- $-
$-

$- $- $- $- $69,756 $59,943 $68,920

$75,222 $80,338 $83,348 $86,605 $37,868 $57,141 $50,718
38%
MENU
BACK TO INPUTS
FORWARD TO RETURN ON INVESTMENT
BACK TO OPERATION SUMMARY

This sheet calculates depreciation. You enter descriptions and values for buildings, equipment and other property.

Depreciation
Buildings 39 year Straight Line
Special Purpose Buildings 10 year Straight Line
Equipment and Heavy Rolling7Stock
Yr MACRS with half year convention
Light Trucks and Vehicles 5 Yr MACRS with half year convention

Buildings
Description Value Salvage
Processing Plant $1,000,000 $30,000
#2 `
#3
#4
#5
Total Buildings $1,000,000 $30,000

Equipment and Heavy Rolling Stock

Description Value
Feed mill $50,000
Pellet mill $50,000
Load out equipment $10,000
Conveying and metering equipment $50,000
Feed Trucks $50,000
Total Equip and Heavy Rolling Stock $210,000

Total Plant Property and Equipment $1,245,000

Land $-
Total Land, Plant Property and Equipment $1,245,000

Additional Purchases 1 2 3 4

Annual Total Depreciation

Year 1 2 3 4
Buildings $24,872 $24,872 $24,872 $24,872
Special Purpose Buildings $2,000 $2,800 $2,800 $2,800
Equipment and Heavy Rolling Stock $30,009 $51,429 $36,729 $26,229
Light Truck and Vehicles $3,000 $4,800 $2,880 $1,728
Additional Depreciation 0 0 0 0
Total Depreciation $59,881 $83,901 $67,281 $55,629

Buildings 39 year Straight Line

Special Purpose Buildings 10 year with percentage from table
Equipment and Heavy Rolling7Stock
year with percentage from table
Light Trucks and Vehicles 5 year with percentage from table

Buildings
Cost $1,000,000
Life 39
Salvage $30,000
Period 39
Depreciation per year for 39 years $24,872

Special Purpose Buildings

Cost $20,000
Life 10

Year Depreciation Rate

1 $2,000 10%
2 $2,800 14%
3 $2,800 14%
4 $2,800 14%
5 $2,800 14%
6 $2,800 14%
7 $2,800 14%
8 $2,800 14%
9 $2,800 14%
10 $2,800 14%

Equipment and Heavy Rolling Stock

Year Depreciation Rate
1 $30,009 14.29%
2 $51,429 24.49%
3 $36,729 17.49%
4 $26,229 12.49%
5 $18,753 8.93%
6 $18,732 8.92%
7 $18,753 8.93%
8 $9,366 4.46%

Light Trucks and Vehicles

Year Depreciation Rate
1 $3,000 20.00%
2 $4,800 32.00%
3 $2,880 19.20%
4 $1,728 11.52%
5 $1,728 11.52%
6 $864 5.76%
ipment and other property.

Special Purpose Buildings

Description Value
Outbuilding $10,000
Storage shed $10,000
#3
#4
#5
Total Special Purpose Building $20,000

Light Trucks and Vehicles

Description Value
Delivery truck $5,000
Company car $5,000
Forklifts $5,000

Total Light Trucks and Vehicles $15,000

5 6 7 8 9 10

5 6 7 8 9 10
$24,872 $24,872 $24,872 $24,872 $24,872 $24,872
$2,800 $2,800 $2,800 $2,800 $2,800 $2,800
$18,753 $18,732 $18,753 $9,366
$1,728 $864
0 0 0 0 0 0
$48,153 $47,268 $46,425 $37,038 $27,672 $27,672
0.06
MENU
BACK TO INPUTS
BACK TO OPERATION SUMMARY

This sheet summaries the feasibility of the project. It provides net present value, benefit cost ratio and internal rate of
The only input is the discount rate.

Discount Rate 12.00%

Year 0 1 2 3
Gross Margin $5,600,000 $5,656,000 $5,712,560
Discount Factor 1 0.89 0.8 0.71
PV of Income $0 $5,000,000 $4,508,929 $4,066,087

Total Expense $65,000 $5,413,657 $5,413,657 $5,486,506

Less Depreciation and Term Interest $109,681 $130,263 $109,930

Cash Expenses $1,310,000 $5,303,976 $5,283,394 $5,376,575

Discount Factor 1 0.89 0.8 0.71
PV of Expenses $1,310,000 $4,735,693 $4,211,889 $3,826,940

Benefits Less Costs ($1,310,000) $296,024 $372,606 $335,985

PV Benefits Less PV Costs ($1,310,000) $264,307 $297,040 $239,147

Total PV of Income $32,802,827

Total PV of Expenses $32,150,267
Net Present Value $652,560
Internal Rate of Return 22.80%
PV Benefit/PV Cost Ratio 1.02
Return on Assets -0.90% 15.86% 13.49% 15.31%
(after tax income/total PPE investment)
Average Return on Assets 16.61%
Payback Period (years) 6
(payback period only displayed if less than 10 years)
it cost ratio and internal rate of return

4 5 6 7 8 9 10
$5,769,686 $5,827,382 $5,885,656 $5,944,513 $6,003,958 $6,063,998 $6,124,638
0.64 0.57 0.51 0.45 0.4 0.36 0.32
$3,666,740 $3,306,613 $2,981,857 $2,688,996 $2,424,898 $2,186,738 $1,971,969

$5,523,334 $5,565,336 $5,610,836 $5,661,820 $5,712,990 $5,710,152 $5,757,374

$94,269 $82,462 $76,900 $71,006 $56,164 $40,907 $34,544

$5,429,065 $5,482,874 $5,533,935 $5,590,814 $5,656,826 $5,669,245 $5,722,830

0.64 0.57 0.51 0.45 0.4 0.36 0.32
$3,450,269 $3,111,130 $2,803,664 $2,529,000 $2,284,697 $2,044,387 $1,842,598.11

$340,620 $344,508 $351,721 $353,699 $347,132 $394,752 $401,807

$216,470 $195,483 $178,193 $159,995 $140,201 $142,352 $129,371

16.49% 17.46% 18.02% 15.28% 22.97% 24.88% 23.88%

6 7 8 9 10
Analysis of Member Return This Sheet Summaries the Member's Return. The only inputs are the tax rates

Member's Income Tax Rate

Initial Investment $522,500 Capital Gains Tax Rate
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Patronage $49,826 $42,817 $49,228 $53,730 $57,384
Stock Dividends $41,800 $52,961 $51,391 $52,827 $53,835

Qualified Stock Received $69,756 $59,943 $68,920 $75,222 $80,338

Non-Qualified Stock Redeemed $- $- $- $- $-
Qualified Stock Redeemed $- $- $- $- $-

Sale of Stock

Taxable Income $161,383 $155,721 $169,539 $181,779 $191,557

Taxable Gain on Stock
Member's Income Tax $48,415 $46,716 $50,862 $54,534 $57,467

After Tax Cash Income $43,211 $49,061 $49,758 $52,023 $53,752

Return on Investment 8% 9% 10% 10% 10%

Average ROI for Common 15%

Cash flows ($522,500) $49,061 $49,758 $52,023 $53,752

Net Present Value: Common ($120,591)

Internal Rate of Return:common 6%

Preferred Stock Return

Dividends 12000 12000 12000 12000 12000
Return on Investment 12% 12% 12% 12% 12%
Average ROI Preferred 12%
are the tax rates

30%
28%
Year 6 Year 7 Year 8 Year 9 Year 10
$59,534 $61,861 $76,875 $83,632 $85,455
$54,654 $55,136 $13,857 $6,059 $9,143

$83,348 $86,605 $107,625 $117,085 $119,637

$- $- $69,756 $59,943 $68,920
$- $- $69,756 $59,943 $68,920

$-

$197,536 $203,602 $268,113 $266,719 $283,155

$-
$59,261 $61,081 $80,434 $80,016 $84,946

$54,927 $55,916 $149,811 $129,562 $147,491

11% 11% 29% 25% 28%

$54,927 $55,916 $149,811 $129,562 $147,491

12000 12000 12000 12000 12000

12% 12% 12% 12% 12%