PROJECT

PRESENTATION
DONE BY:
HAMZA
BATTIKHI
 • The project is about an investment in a
factory for PV Panels, the capital cost will
be $30 million. In this presentation I will
INTRODUCTION
display and discuss the work breakdown
structure and use some calculations to
know if the project worth the investment.
 • The factory is 10,000 m2,the land is
already owned , the capital cost will be $30
million and the earnings are $12 million
DESCRIPTION yearly . The MARR for the project has to
be 30% so we can consider the project
good for investment. The study for the
project will be for 5 years.
 Work Breakdown structure
PV panels
factory

construction costs

Cooling
Foundations Windows Walls Floor Materials Operating
roof systems Labor machines maintenance License
300,000$ 2000$ 2000$ 2000$ 300,000$ costs
600,000

Electricity Water Routine

Direct labor Indirect labor Emergency
200,000$ 160,000$ maintenance

Workers Engineers Admin Security Cleaning staff

100,000$ 380,000$ 36,000$ 24,000$ 6000$
 Methods of evaluation
1.Present Worth (PW)
2.Future Worth (FW)
3.Annual Worth (AW)
4.Internal rate of return (IRR)
5.External rate of return (ERR)
6.Payback Period
 Present Worth

PW= -P + A (P/A, MARR%, N)

PW= -30,000,000 + 12,000,000*(P/A, 30%, 5)
PW= -30,000,000 + 12,000,000*2.4355
PW= -774,000$
 Future Worth
FW= -P (F/P, MARR%, N) + A (F/A, MARR%, N)
FW= -30,000,000* (F/P, 30%, 5) + 12,000,000*(F/A, 30%, 5)
FW= -30,000,000* 3.71293+12,000,000*9.0431
FW= -2,870,700$
 Annual Worth

AW= -P (A/P, MARR%, N) + A

AW= -30,000,000*(A/P, 30%, 5) + 12,000,000
AW= -30,000,000*0.4105 + 12,000,000
AW= -315,000 $
 Internal rate of return (IRR)

∑ Rk(P/F, i`%, k) = ∑ Ek(P/F, i`%, k)

30,000,000=12,000,000(P/A,i,5)
i`%= 28.649%
 External rate of rate (ERR)

30,000,000(F/P, i`%, 5) = 12,000,000(F/A, 30%, 5)

(F/A, 30%, 5) = 9.0431
i`% = 29.32%
 Payback Period

∑(Rk – Ek) – I ≥ 0
K=1
∑12,000,000(P/A, 30% , K) -30,000,000 >=0
K=1
Payback Period = 2.5 Years
 Results
The present worth is -774,000$ , the future worth is
-2,870,700$ and the Annual worth is -315,000 $ so depending on
this study, the project is infeasible. Also, the internal rate of
return is 28.649% and the external rate of return is 29.32% both
are less than the MARR which is 30% and this leads us to the
same result that the project is infeasible. So the project is non
profitable.
 Conclusion
In this study, we used some methods to evaluate a project
and see if it is feasible, and depending on the numbers we
got, I can say that the project is not good for investment.
The period is 5 years and the payback period is 2.5 years
but the numbers shows that the project will be losing. So
the investment in such a project is not a good idea.