Exercise of Project Financial Appraisal The Hydrolyzed Protein Factory Construction Project 1. Overview of The Project
Exercise of Project Financial Appraisal The Hydrolyzed Protein Factory Construction Project 1. Overview of The Project
Unit price
Inputs
2 019
4
550
2 020
5
570
Unit: VND
Materials
Year
0
Materials Investment
Material consumption standard
Material price
Enzyme
Year
0
Enzyme Investment
1.6
Material units
750 000 VND/ton
1
2
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Consumption standard
Unit price
20%
7 500 000
Material unit
VND/ ton
Gas
Year
0
Gas Investment
Consumption standard
Personnels salary, insurance cost
(Average of 20 people)
Electricity, water
Package, transport
Year
Cost
Package and transports unit price
Outside manufacture cost
Initial investment capital
a. Building capital
a.1. Factory
a.2. Product warehouse
a.3. Internal roads
a.4. Grass, Trees
a.5. Laboratory
a.6. Office
Total building cost
Depreciation in 10 years, using
straight line method
b. Equipment
Production tools
Total equipment cost
Depreciation in 5 years, using
straight line method
c. Manufacturing equipment
c.1. Production line
c.2. Equipment for the laboratory
4
4
5
5
2
2
Investment
300 000 VND/ton
36 200 000 VND/ year
2015 (Year 0 of the project)
Amount
Unit price
Sum of money
2
(m )
(VND)
(VND)
720
1 500 000
300
1 500 000
1 512
250 000
520
100 000
25
1 800 000
150
1 800 000
Unit: VND
3
3
VND
Approximate
Concessional debt
Income tax
Cost of equity
VND
3 000 000 000 VND
Interest rate 6.5%/year
Constant payment in 4 years (from the first year
22% Year
20% Year
Requirements:
1. Create the debt payment schedule; calculate Cost of debt and WACC
Create Depreciation schedule; Estimation revenue; Cost of production and the statement of income?
2. Create cash flow of the project (investors perspective)? Identify indicators of project financial appraisal?
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