January

Demand
Total receivable

20,000
5,000,000

February
March
April
30,000
30,000
40,000
7,500,000
7,500,000
10,000,000

Receipts
10%
60%
30%
Total cash Inflow

500,000

750,000
3,000,000
3,750,000

750,000
4,500,000
1,500,000
6,750,000

1,000,000
4,500,000
2,250,000
7,750,000

500,000

50,000
500,000
150,000
1,500,000

50,000
750,000

50,000
750,000

2,250,000

2,250,000

50,000
1,000,000
150,000
3,000,000

1,050,000
450,000
1,500,000

1,400,000
450,000
2,000,000

4,550,000

6,050,000

2,200,000

1,700,000

Payable
Fixed cost
Variable cost
Rent
Material
Labor
70%

700,000

Tax 30%
Total labor cost

1,000,000

1,050,000
300,000
1,500,000

Total Cashout flow

2,900,000

4,400,000

Net cash flow

(2,400,000)

Total
(650,000)

May

June

July

August

September
October
60,000
40,000
15,000,000
10,000,000

80,000
20,000,000

80,000
20,000,000

80,000
20,000,000

80,000
20,000,000

2,000,000
6,000,000
2,250,000
10,250,000

2,000,000
12,000,000
3,000,000
17,000,000

2,000,000
12,000,000
6,000,000
20,000,000

2,000,000
12,000,000
6,000,000
20,000,000

1,500,000
12,000,000
6,000,000
19,500,000

1,000,000
9,000,000
6,000,000
16,000,000

50,000
2,000,000

50,000
2,000,000

50,000
2,000,000

50,000
1,500,000

6,000,000

6,000,000

50,000
2,000,000
150,000
6,000,000

6,000,000

4,500,000

50,000
1,000,000
150,000
3,000,000

2,800,000
600,000
4,000,000

2,800,000
1,200,000
4,000,000

2,800,000
1,200,000
4,000,000

2,800,000
1,200,000
4,000,000

2,100,000
1,200,000
3,000,000

1,400,000
900,000
2,000,000

11,450,000

12,050,000

12,200,000

12,050,000

9,350,000

6,500,000

(1,200,000)

4,950,000

7,800,000

7,950,000

10,150,000

9,500,000

November
December
40,000
20,000
10,000,000
5,000,000
1,000,000
6,000,000
4,500,000
11,500,000

500,000
6,000,000
3,000,000
9,500,000

50,000
1,000,000

50,000
500,000

3,000,000

1,500,000

1,400,000
600,000
2,000,000

700,000
600,000
1,000,000

6,050,000

3,350,000

5,450,000

6,150,000

3,000,000
3,000,000

300000

1,500,000

000
Land Acquisition Costs
Demolition costs
Decontamination Costs
Construction Costs
Fitting Out Costs
Total Intial Investment
000

Site A

Site B
4,000
100 -

5,000

300
16,000
4,500
25,800

15,000
4,000
23,100
Site A
Net Profit

Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15

Depn.
1,266
1,266
1,266
1,266
1,266
1,266
1,266
1,266
1,266
1,266
1,266
1,266
1,266
1,266
1,266

734
1,734
2,734
3,134
3,634
4,134
4,234
4,259
4,279
4,284
4,309
4,324
4,734
4,734
4,734

-23,100

NPV A
Cummulative cash inflow

Site B
Net Cash
Net Profit
2,000
734
3,000
1,784
4,000
2,834
4,400
3,254
4,900
3,779
5,400
4,304
5,500
4,409
5,525
4,435
5,545
4,456
5,550
4,462
5,575
4,488
5,590
4,504
6,000
4,934
6,000
4,934
6,000
4,934

1754.39
1754.39

2308.40
4062.79

2699.89
6762.68

2423.82
4265.93

2834.88
7100.81

Cash Inflow
Cash Outflow
27080.6078
-23,100
NPV A

3,981

IRR

2%

Payback Period
ARR
NPV B

58.80%
-25800

Cash Outflow

1842.11
1842.11

Cash Inflow
-25800
28434.77

NPV B
IRR

2634.77
1%

Payback period
ARR

60.20%

Depn
1,366
1,366
1,366
1,366
1,366
1,366
1,366
1,366
1,366
1,366
1,366
1,366
1,366
1,366
1,366

Net Cash
2,100
3,150
4,200
4,620
5,145
5,670
5,775
5,801
5,822
5,828
5,854
5,870
6,300
6,300
6,300

2605.15
9367.83

2544.91
11912.74

2460.17
14372.91

2198.01
16570.91

1936.84
18507.75

1705.13
20212.88

1497.08
21709.96

1319.14
23029.10

2735.41
9836.22

2672.15
12508.38

2583.18
15091.55

2307.91
17399.46

2033.59
19433.05

1790.31
21223.36

1572.07
22795.43

1385.16
24180.59

1160.26
24189.36

1092.42
25281.77

958.26
26240.03

840.58
27080.61

1218.37
25398.96

1147.04
26546.00

1006.17
27552.17

882.61
28434.78