Designing a microgrid is an incredibly complex task - there's no such thing as a standard

microgrid. This unpolished tool is a baby step in the direction of standardizing microgrid ROI
calculations, which guide planning and decision-making. It's intended to be a conversation
starter. Something to get you and your time thinking about what really goes into the design
and installaion of a microgrid.

Assumptions:
1 The equipment/device costs will go down by 10% every 5 years
2 The per unit price increases at a fixed 3% every year
3 The fuel cost grows at 2% per year
4 The operation cost grows at 2% every year
5 All the assets are depreciated at SLM and have no salvage value at the end of their useful life
6 Cost of debt is 7.5% given the renewable energy nature, hence subsidized loans
7 Tax rate is 30% given the renewable energy hence subsidized
8 1 USD=INR 60

References:
http://www.pwc.in/en_IN/in/assets/pdfs/publications/2013/dissecting-indias-risk-equity-premium.pdf
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html
pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/Betas.html

About the Author: Mahesh Bhave: Mahesh is a Visiting Professor of Strategy at Indian
Institute of Management, Kozhikode, India. He has worked in product management, strategy,
and business development positions at Hughes, Sprint, and Citizens in the United States. He
is the founder of a rich media communications start-up in San Diego, CA. He is an engineer
from IIT, New Delhi and Ph.D. from Syracuse University. He is also LEED AP certified.
as a standard
ng microgrid ROI
a conversation
into the design

heir useful life

idized loans

isk-equity-premium.pdf

y at Indian
gement, strategy,
nited States. He
is an engineer
ertified.
 KVA
Date Time R Y B
13/10/2014 2.00. p.m. 2.057 2.217 2.251
2.20.p.m. 2.098 2.276 2.199
2.40.p.m. 2.112 2.261 2.294
3.00.p.m. 2.212 2.305 2.397
3.20.p.m. 2.153 2.283 2.288
3.40.p.m 2.126 2.290 2.274
4.00.p.m. 2.208 2.330 2.321
4.20.p.m. 2.303 2.309 2.533
4.40.p.m. 2.272 2.337 2.404
5.00.p.m. 2.198 2.332 2.409
5.20.p.m. 1.819 1.906 1.894
5.40.p.m. 1.672 1.836 1.782
6.00.p.m. 1.619 1.802 1.766
6.20.p.m. 2.069 2.192 2.239
6.40.p.m. 2.008 2.227 2.221
7.00.p.m. 1.834 2.055 2.01
7.20.p.m. 2.438 2.425 2.378 DG2
7.40.p.m. 1.521 1.417 1.46
8.00.p.m. 1.798 2.074 1.928
8.20.p.m. 2.067 2.362 2.324
8.40.p.m. 2.036 2.281 2.313
9.00.p.m. 2.109 2.308 2.275
9.20.p.m. 1.903 2.158 2.143
9.40.p.m. 1.949 2.126 2.181
10.00.p.m. 1.819 2.059 2.073
10.20.p.m. 1.488 1.675 1.619
10.40.p.m. 1.591 1.753 1.760
11.00.p.m. 1.283 1.302 1.377
11.20.p.m. 1.268 1.325 1.347
11.40.p.m. 1.236 1.290 1.345
14/10/2014 12.00.a.m. 1.201 1.263 1.251
12.20.a.m. 1.189 1.204 1.221
12.40.a.m. 1.140 1.176 1.190
1.00.a.m. 1.030 1.102 1.148
1.20.a.m. 1.026 1.104 1.131
1.40.a.m. 1.019 1.098 1.112
2.00.a.m. 1.013 1.083 1.031
2.20.a.m. 1.001 1.024 1.017
2.40.a.m. 0.983 0.990 0.975
3.00.a.m. 0.973 0.970 0.958
 3.20.a.m. 0.972 0.968 0.953
3.40.a.m. 0.936 0.912 0.886
4.00.a.m. 0.805 0.827 0.751
4.20.a.m. 0.804 0.816 0.762
4.40.a.m. 0.812 0.815 0.730
5.00.a.m. 0.774 0.762 0.773
5.20.a.m. 0.760 0.758 0.782
5.40.a.m. 0.755 0.766 0.781
6.00.a.m. 0.795 0.809 0.816
6.20.a.m. 0.634 0.645 0.632
6.40.a.m. 0.661 0.661 0.623
7.00.a.m. 0.684 0.758 0.725
7.20.a.m. 0.735 0.840 0.791
7.40.a.m. 0.881 0.972 0.998
8.00.a.m. 0.940 1.034 0.968
8.20.a.m. 0.767 0.905 0.840
8.40.a.m. 1.277 1.471 1.474
9.00.a.m. 1.526 1.733 1.779
9.20.a.m. 1.601 1.740 1.753
9.40.a.m. 1.952 2.097 2.125
10.00.a.m. 1.958 2.132 2.148
10.20.a.m. 2.019 2.141 2.146
10.40.a.m. 1.868 1.99 1.933
11.00.a.m. 1.916 2.058 2.049
11.20.a.m. 1.951 2.056 2.046 DG 2-1250
11.40.a.m. 2.077 2.157 2.033
12.00.p.m. 1.537 1.605 1.752
12.20.p.m. 2.085 2.291 2.456
12.40.p.m. 1.833 2.049 2.176
1.00.p.m. 2.046 2.265 2.411
1.20.p.m. 1.900 1.125 2.270
1.40.p.m. 1.911 2.165 2.292
2.00.p.m. 1.999 2.245 2.400
2.20.p.m. 2.032 2.277 2.443
2.40.p.m. 2.267 2.512 2.613
3.00.p.m. 2.487 2.704 2.811
3.20.p.m. 2.460 2.772 2.930
3.40.p.m. 2.728 2.955 3.109
4.00.p.m. 2.411 2.718 2.839
4.20.p.m. 2.381 2.564 2.697
4.40.p.m. 2.346 2.561 2.639
5.00.p.m. 2.270 2.550 2.620
5.20.p.m. 2.273 2.494 2.579
 5.40.p.m. 2.043 2.253 2.431
6.00.p.m. 2.085 2.250 2.369
6.20.p.m. 2.076 2.295 2.375
6.40.p.m. 2.220 2.460 2.580
7.00.p.m. 1.981 2.061 2.310
7.20.p.m. 1.090 1.230 1.190
7.40.p.m. 1.198 1.358 1.410
8.00.p.m. 1.367 1.535 1.566
8.20.p.m. 1.315 1.487 1.573
8.40.p.m. 1.441 1.668 1.726
9.00.p.m. 1.360 1.610 1.700
9.20.p.m. 1.168 1.153 1.394
9.40.p.m. 1.208 1.351 1.450
10.00.p.m. 1.267 1.395 1.466
10.20.p.m. 1.168 1.153 1.394
10.40.p.m. 1.208 1.351 1.450
11.00.p.m. 1.710 1.903 2.038
11.20.p.m. 1.327 1.497 1.561
11.40.p.m. 1.367 1.458 1.520
15/10/2014 12.00.a.m. 1.201 1.294 1.386
12.20.a.m. 1.064 1.154 1.199
12.40.a.m. 1.090 1.290 1.321
1.00.a.m. 1.089 1.205 1.287
1.20.a.m. 1.078 1.200 1.273
1.40.a.m. 1.050 1.170 1.200
2.00.a.m. 1.752 1.911 2.047
2.20.a.m. 1.583 1.715 1.863
2.40.a.m. 1.619 1.719 1.868
3.00.a.m. 1.703 1.768 1.887
3.20.a.m. 0.889 0.984 1.035
3.40.a.m. 0.878 0.980 1.009
4.00.a.m. 0.917 1.003 1.059
4.20.a.m. 0.795 0.908 0.960
4.40.a.m. 0.810 0.918 0.973
5.00.a.m. 0.827 0.944 0.971
5.20.a.m. 0.838 0.951 0.993
5.40.a.m. 0.855 0.972 1.029
6.00.a.m. 0.707 0.814 0.882
6.20.a.m. 0.696 0.701 0.712
6.40.a.m. 0.693 0.703 0.718
7.00.a.m. 0.818 0.888 0.957
7.20.a.m. 0.804 0.897 0.867
7.40.a.m. 0.847 0.979 0.931
8.00.a.m. 0.833 0.905 0.852
8.20.a.m. 1.264 1.332 1.353
8.40.a.m. 1.700 1.924 2.013
9.00.a.m. 1.965 2.149 2.271
9.20.a.m. 2.290 2.398 2.467
9.40.a.m. 2.074 2.221 2.377
10.00.a.m. 1.972 2.153 2.290
10.20.a.m. 2.071 2.251 2.254
10.40.a.m. 2.110 2.208 2.360
11.00.a.m. 2.160 2.258 2.401
11.20.a.m. 2.265 2.498 2.579
11.40.a.m. 2.314 2.549 2.624
12.00.a.m. 2.380 2.503 2.600
12.20.a.m. 2.371 2.584 2.654
12.40.a.m. 2.314 2.551 2.636
1.00.p.m. 2.391 2.615 2.691
1.20.p.m. 2.390 2.637 2.733
1.40.p.m. 2.291 2.518 2.629
2.00.p.m. 2.586 2.887 2.964
2.20.p.m. 2.569 2.835 3.007
2.40.p.m. 2.666 2.941 3.105
3.00.p.m. 2.060 2.164 2.290
3.20.p.m. 1.872 1.952 2.052
3.40.p.m. 2.060 2.167 2.290
4.00.p.m. 2.285 2.313 2.701
 Total Abbreviations Used:
KVA = Kilo Volt Ampere
2.00. p.m. 652.5 13/10/2014 KW = Kilo Watt
2.20.p.m. 657.3 Wh = Watt Hour
2.40.p.m. 666.7 R,Y,B = 3 Phases in Electricity
3.00.p.m. 691.4 W= Watt
3.20.p.m. 672.4 Ah = Ampere Hour
3.40.p.m 669 MW = Mega Watt
4.00.p.m. 685.9 KWH = Kilo Watt Hour
4.20.p.m. 714.5
4.40.p.m. 701.3
5.00.p.m. 693.9
5.20.p.m. 561.9
5.40.p.m. 529
6.00.p.m. 518.7
6.20.p.m. 650
6.40.p.m. 645.6
7.00.p.m. 589.9
7.20.p.m. 724.1
7.40.p.m. 439.8
8.00.p.m. 580
8.20.p.m. 675.3
8.40.p.m. 663
9.00.p.m. 669.2
9.20.p.m. 620.4
9.40.p.m. 625.6
10.00.p.m. 595.1
10.20.p.m. 478.2
10.40.p.m. 510.4
11.00.p.m. 396.2
11.20.p.m. 394
11.40.p.m. 387.1
12.00.a.m. 371.5 14/10/2014
12.20.a.m. 361.4
12.40.a.m. 350.6
1.00.a.m. 328
1.20.a.m. 326.1
1.40.a.m. 322.9
2.00.a.m. 312.7
2.20.a.m. 304.2
2.40.a.m. 294.8
3.00.a.m. 290.1
 3.20.a.m. 289.3
3.40.a.m. 273.4
4.00.a.m. 238.3
4.20.a.m. 238.2
4.40.a.m. 235.7
5.00.a.m. 230.9
5.20.a.m. 230
5.40.a.m. 230.2
6.00.a.m. 242
6.20.a.m. 191.1
6.40.a.m. 194.5
7.00.a.m. 216.7
7.20.a.m. 236.6
7.40.a.m. 285.1
8.00.a.m. 294.2
8.20.a.m. 251.2
8.40.a.m. 422.2
9.00.a.m. 503.8
9.20.a.m. 509.4
9.40.a.m. 617.4
10.00.a.m. 623.8
10.20.a.m. 630.6
10.40.a.m. 579.1
11.00.a.m. 602.3
11.20.a.m. 605.3
11.40.a.m. 626.7
12.00.p.m. 489.4
12.20.p.m. 683.2
12.40.p.m. 605.8
1.00.p.m. 672.2
1.20.p.m. 529.5
1.40.p.m. 636.8 1 day load profile
1000
2.00.p.m. 664.4 900
2.20.p.m. 675.2 800
700
2.40.p.m. 739.2 600
3.00.p.m. 800.2 500
400
3.20.p.m. 816.2
300
3.40.p.m. 879.2 200
4.00.p.m. 796.8 100
0
4.20.p.m. 764.2
4.40.p.m. 754.6
5.00.p.m. 744
5.20.p.m. 734.6
 5.40.p.m. 672.7
6.00.p.m. 670.4
6.20.p.m. 674.6
6.40.p.m. 726
7.00.p.m. 635.2
7.20.p.m. 351
7.40.p.m. 396.6
8.00.p.m. 446.8
8.20.p.m. 437.5
8.40.p.m. 483.5
9.00.p.m. 467
9.20.p.m. 371.5
9.40.p.m. 400.9
10.00.p.m. 412.8
10.20.p.m. 371.5
10.40.p.m. 400.9
11.00.p.m. 565.1
11.20.p.m. 438.5
11.40.p.m. 434.5 KVA KW Daily KW Monthly KW
12.00.a.m. 388.1 15/10/2014 34202.8 32835 10945 328347
12.20.a.m. 341.7 10944896 11789896
12.40.a.m. 370.1 Demand Wh Generated Wh
1.00.a.m. 358.1
1.20.a.m. 355.1
1.40.a.m. 342
2.00.a.m. 571
2.20.a.m. 516.1
2.40.a.m. 520.6
3.00.a.m. 535.8
3.20.a.m. 290.8
3.40.a.m. 286.7
4.00.a.m. 297.9
4.20.a.m. 266.3
4.40.a.m. 270.1
5.00.a.m. 274.2
5.20.a.m. 278.2
5.40.a.m. 285.6
6.00.a.m. 240.3
6.20.a.m. 210.9
6.40.a.m. 211.4
7.00.a.m. 266.3
7.20.a.m. 256.8
7.40.a.m. 275.7
 8.00.a.m. 259
8.20.a.m. 394.9
8.40.a.m. 563.7
9.00.a.m. 638.5
9.20.a.m. 715.5
9.40.a.m. 667.2
10.00.a.m. 641.5
10.20.a.m. 657.6 2 day load profile
1000
10.40.a.m. 667.8 900
11.00.a.m. 681.9 800
11.20.a.m. 734.2 700
600
11.40.a.m. 748.7 500
12.00.a.m. 748.3 400
300
12.20.a.m. 760.9 200
12.40.a.m. 750.1 100
0
1.00.p.m. 769.7
1.20.p.m. 776
1.40.p.m. 743.8
2.00.p.m. 843.7
2.20.p.m. 841.1
2.40.p.m. 871.2
3.00.p.m. 651.4
3.20.p.m. 587.6
3.40.p.m. 651.7
4.00.p.m. 729.9
o Volt Ampere

Phases in Electricity

mpere Hour

o Watt Hour
profile
nerated Wh
Step Process Example
1 Identify total daily use in Watt-hours (Wh) 6,000 Wh/day

3 Days of Autonomy:
Identify Days of Autonomy (backup days);
2 multiply Wh/day by this factor. 6,000 x 3 = 18,000
Wh

Identify Depth of Discharge (DoD) and convert to 40% DoD:

3 a decimal value. Divide result of Step 2 by this
value. 18,000 / 0.4 =
45,000 Wh
Derate battery bank for ambient temperature
effect. Select the multiplier corresponding to the
lowest average temperature your batteries will be 60 F. = 1.11
exposed to. Multiply result from Step 3 by this
factor. Result is minimum Wh capacity of battery
bank: 45,000 x 1.11 =
Temp. in [degrees] F. Factor 49,950 Wh
80+ 1.00
4
70 1.04
60 1.11
50 1.19
40 1.30
30 1.40
20 1.59
Divide result from Step 4 by system voltage. 49,950 / 48 = 1,040
5 Result is the minimum Amp-hour (Ah) capacity of
Ah
your battery bank.

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 6hr diesel 5hr diesel

Wh/day 6,323,000 6,565,000

1 1

6,323,000 6,565,000

1 1

12,646,000 9,378,571

1 1
12,646,000 9,378,571

Volt 12 12

Ah 1,053,833 781,548
Average load 512,000 W
Peak Load (900 kW) ~ 1,000,000 W
Total KWH demand in a day 10,944,896 Wh
Total KWH produced/ generated in a day 11,789,896 Wh
Servicing 80%

SOLAR (direct peak energy sourcing & charging)

sunlight available average per day( 10 AM- 3 5 hrs
Energy generation with excess capacity 1,900,000 Wh

Energy power from panel 1,731,000 Wh

Excess generation (5hour Excess generation) 845,000

Solar panel rating 300 W

Number of panels 6,333
Cost (per piece) (Hyundai) $ 250.00
Total cost $ 1,266,666.67
 Load Profile Max KW Input from MATLAB program
6-9 AM 3 hrs 500 Maximum 5 hours of diesel generator
9 AM- 2 PM 5 hrs 700 Rest time demand is matched by
2 - 5 PM 3 hrs 900 supply of solar plus battery. Battery
5 PM- 6 AM 13 hrs 500 is charged by excess generation from
Solar & Diesel generator
Detailed load profile in another sheet

INVERTER BATTERY (detailed in Battery Sizing sheet)

maximum inverter rating Total energy required
required 800,000 W Amp Hrs required for 12 V batter

Unit inverter rating 8,000 W us185hcxc 12 v 220 ah deep cycle bat

Inverter required 100 Number of battery:

Cost $ 3,000 Cost

Total cost $ 300,000 Total cost
generator

Capital Cost $ 2,872,720.62

ry Sizing sheet) DIESEL GENERATOR (direct peak energy sourcing & charging)
9,378,571 Wh
781,548 Ah Cummins Lean Burn QSV91 Series GeneratorsC2000N5C

220 Ah existing gas generator 1250 KVA ~ 1 MW

3,552 Capital cost 16,000,000

$ 293 $ 266,667
$ 1,039,387 Fuel cost per hour $ 187
Operation time per day 5
Total fuel cost $ 937
C2000N5CB

$ per hour
hrs
$ per day
Month Amount in Rs. Number of units
Nov-13 1,430,228.00 237,840
Dec-13 1,572,276.00 257,688
Jan-14 1,558,503.00 247,632
Feb-14 1,563,211.00 256,512
Mar-14 1,516,386.00 242,328
Apr-14 1,652,188.00 282,204
May-14 1,297,116.00 198,384
Jun-14 892,508.00 132,408
Jul-14 1,069,692.00 176,292
Aug-14 1,328,842.00 215,952
Sep-14 1,641,477.00 229,212
Oct-14 1,851,337.00 265,452 Total Revenue per Year
3,153,190 44,144,654.40
$ 735,744.24
extra demand 15%

Assumption:
The demand will be 15% more than the model IIMK campus since the place would not be empty for 2-3 months like
ty for 2-3 months like in case of IIMK
Name Year of Investment Investment amount
Batteries 1 0 $ 1,039,387
Inverters 1 0 $ 300,000
Diesel Generators 1 0 $ 266,667
Solar Panel + Balance of Systems (BOS) 0 $ 1,646,667
Batteries 2 10 $ 841,904
Inverters 2 10 $ 243,000
Diesel Generators 2 15 $ 194,400
Batteries 3 20 $ 681,942
Inverters 3 20 $ 196,830

Fuel Cost $ 341,896

Operating Cost $ 87,200 Cost per unit (Rs.)
Number of Units $ 3,153,190 cost per unit ($)
Useful Life (in Depreciation rate_Straight
years) Line Method (SLM) Salvage Value
10 10% 0
10 10% 0
15 7% 0
25 4% 0
10 10% 0 Total cost of project
10 10% 0 Debt by Value ratio (D/V)
15 7% 0 Debt
10 10% 0
10 10% 0

Assumption:
14.00 Growth in demand 0.00%
$ 0.23 Growth in per unit cost 3%
Equipment/device costs go down by 10% every 5 years
$ 5,839,892
0.60
$ 3,503,935
 Year 1 2

Revenue $ 735,744 $ 757,817

Costs:
Solar Costs + Balance
of System Depreciation $ 65,867 $ 65,867

Inverter Costs Depreciation $ 30,000 $ 30,000

Generator Costs Depreciation $ 17,778 $ 17,778

Fuel cost $ 341,896 $ 348,733

Battery Costs Depreciation $ 103,939 $ 103,939

Operating, Maintenance & Other Costs $ 87,200 $ 88,944

Total operating expense $ 429,096 $ 437,677
Total Depreciation $ 217,583 $ 217,583
Total Expenses $ 646,679 $ 655,261
Earnings Before Interest
and Tax (EBIT) $ 89,066 $ 102,556
Cost of Debt (Kd) Interest Cost $ 138,068 $ 130,398
7.50% Initial capital requirement $ 3,681,816
Debt by Value ratio (D/VEquity $ 1,840,908 $ 1,840,908
0.5 Debt outstanding $ 1,840,908 $ 1,738,635
Debt repayment $ 102,273 $ 193,182
Tax rate Profit Before Tax (PBT) $ -49,003 $ -27,842
30% Taxable PBT $ - $ -
Tax $ - $ -
Debt Repayment Years Net income $ -49,003 $ -27,842
18

Total cost $ 784,747 $ 785,658

Total cost (Rs.) per day 128,999 129,149
Number of units 11790
Cost per unit (in Rs.) 10.94 $ 0.18
 3 4 5 6 7

$ 780,551 $ 803,968 $ 828,087 $ 852,929 $ 878,517

$ 65,867 $ 65,867 $ 65,867 $ 65,867 $ 65,867

$ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000

$ 17,778 $ 17,778 $ 17,778 $ 17,778 $ 17,778

$ 355,708 $ 362,822 $ 370,079 $ 377,480 $ 385,030

$ 103,939 $ 103,939 $ 103,939 $ 103,939 $ 103,939

$ 90,723 $ 92,537 $ 94,388 $ 96,276 $ 98,201

$ 446,431 $ 455,360 $ 464,467 $ 473,756 $ 483,231
$ 217,583 $ 217,583 $ 217,583 $ 217,583 $ 217,583
$ 664,014 $ 672,943 $ 682,050 $ 691,339 $ 700,814

$ 116,537 $ 131,025 $ 146,037 $ 161,590 $ 177,703

$ 115,909 $ 96,591 $ 75,126 $ 54,258 $ 36,172

$ 1,840,908 $ 1,840,908 $ 1,840,908 $ 1,840,908 $ 1,840,908

$ 1,545,454 $ 1,287,878 $ 1,001,683 $ 723,438 $ 482,292
$ 257,576 $ 286,195 $ 278,245 $ 241,146 $ 187,558
$ 628 $ 34,434 $ 70,910 $ 107,332 $ 141,531
$ 628 $ 34,434 $ 70,910 $ 107,332 $ 141,531
$ 188 $ 10,330 $ 21,273 $ 32,200 $ 42,459
$ 440 $ 24,104 $ 49,637 $ 75,132 $ 99,072

$ 779,923 $ 769,534 $ 757,176 $ 745,597 $ 736,986

128,207 126,499 124,467 122,564 121,148
 8 9 10 11 12

$ 904,873 $ 932,019 $ 959,979 $ 988,779 $ 1,018,442

$ 65,867 $ 65,867 $ 65,867 $ 65,867 $ 65,867

$ 30,000 $ 30,000 $ 30,000 $ 24,300 $ 24,300

$ 17,778 $ 17,778 $ 17,778 $ 17,778 $ 17,778

$ 392,730 $ 400,585 $ 408,597 $ 416,769 $ 425,104

$ 103,939 $ 103,939 $ 103,939 $ 84,190 $ 84,190

$ 100,165 $ 102,169 $ 104,212 $ 106,296 $ 108,422

$ 492,896 $ 502,754 $ 512,809 $ 523,065 $ 533,526
$ 217,583 $ 217,583 $ 217,583 $ 192,135 $ 192,135
$ 710,479 $ 720,337 $ 730,392 $ 715,200 $ 725,661

$ 194,394 $ 211,682 $ 229,587 $ 273,579 $ 292,781

$ 22,105 $ 12,281 $ 6,140 $ 2,729 $ 1,061

$ 1,840,908 $ 1,840,908 $ 2,925,812 $ 2,925,812 $ 2,925,812

$ 294,734 $ 163,741 $ 81,871 $ 36,387 $ 14,150
$ 130,993 $ 81,871 $ 45,484 $ 22,236 $ 9,434
$ 172,289 $ 199,401 $ 223,447 $ 270,850 $ 291,720
$ 172,289 $ 199,401 $ 223,447 $ 270,850 $ 291,720
$ 51,687 $ 59,820 $ 67,034 $ 81,255 $ 87,516
$ 120,602 $ 139,581 $ 156,413 $ 189,595 $ 204,204

$ 1,003,773

$ 732,584 $ 732,618 $ 736,532 $ 717,929 $ 726,722

120,425 120,430 121,074 118,016 119,461
 13 14 15 16 17

$ 1,048,995 $ 1,080,465 $ 1,112,879 $ 1,146,266 $ 1,180,654

$ 65,867 $ 65,867 $ 65,867 $ 65,867 $ 65,867

$ 24,300 $ 24,300 $ 24,300 $ 24,300 $ 24,300

$ 17,778 $ 17,778 $ 17,778 $ 12,960 $ 12,960

$ 433,606 $ 442,278 $ 451,124 $ 460,146 $ 469,349

$ 84,190 $ 84,190 $ 84,190 $ 84,190 $ 84,190

$ 110,591 $ 112,802 $ 115,059 $ 117,360 $ 119,707

$ 544,197 $ 555,081 $ 566,182 $ 577,506 $ 589,056
$ 192,135 $ 192,135 $ 192,135 $ 187,317 $ 187,317
$ 736,332 $ 747,216 $ 758,317 $ 764,823 $ 776,373

$ 312,664 $ 333,250 $ 354,562 $ 381,442 $ 404,280

$ 354 $ 98 $ 22 $ 4 $ 0

$ 2,925,812 $ 2,925,812 $ 3,120,212 $ 3,120,212 $ 3,120,212

$ 4,717 $ 1,310 $ 291 $ 49 $ 5
$ 3,407 $ 1,019 $ 243 $ 43 $ 5
$ 312,310 $ 333,151 $ 354,540 $ 381,439 $ 404,280
$ 312,310 $ 333,151 $ 354,540 $ 381,439 $ 404,280
$ 93,693 $ 99,945 $ 106,362 $ 114,432 $ 121,284
$ 218,617 $ 233,206 $ 248,178 $ 267,007 $ 282,996

$ 736,685 $ 747,314 $ 758,339 $ 764,827 $ 776,374

121,099 122,846 124,658 125,725 127,623
 18 19 20 21 22

$ 1,216,073 $ 1,252,555 $ 1,290,132 $ 1,328,836 $ 1,368,701

$ 65,867 $ 65,867 $ 65,867 $ 65,867 $ 65,867

$ 24,300 $ 24,300 $ 24,300 $ 19,683 $ 19,683

$ 12,960 $ 12,960 $ 12,960 $ 12,960 $ 12,960

$ 478,736 $ 488,311 $ 498,077 $ 508,039 $ 518,200

$ 84,190 $ 84,190 $ 84,190 $ 68,194 $ 68,194

$ 122,101 $ 124,543 $ 127,034 $ 129,575 $ 132,166

$ 600,837 $ 612,854 $ 625,111 $ 637,613 $ 650,366
$ 187,317 $ 187,317 $ 187,317 $ 166,704 $ 166,704
$ 788,154 $ 800,171 $ 812,428 $ 804,317 $ 817,069

$ 427,919 $ 452,384 $ 477,704 $ 524,519 $ 551,632

$ 0 $ - $ - $ - $ -

$ 3,120,212 $ 3,120,212 $ 3,317,062 $ 3,317,062 $ 3,317,062

$ 0 $ - $ - $ - $ -
$ 0 $ - $ - $ - $ -
$ 427,919 $ 452,384 $ 477,704 $ 524,519 $ 551,632
$ 427,919 $ 452,384 $ 477,704 $ 524,519 $ 551,632
$ 128,376 $ 135,715 $ 143,311 $ 157,356 $ 165,489
$ 299,543 $ 316,669 $ 334,393 $ 367,163 $ 386,142

$ 788,154 $ 800,171 $ 812,428 $ 804,317 $ 817,069

129,560 131,535 133,550 132,217 134,313
 23 24 25

$ 1,409,762 $ 1,452,055 $ 1,495,617

$ 65,867 $ 65,867 $ 65,867

$ 19,683 $ 19,683 $ 19,683

$ 12,960 $ 12,960 $ 12,960

$ 528,563 $ 539,135 $ 549,917

$ 68,194 $ 68,194 $ 68,194

$ 134,809 $ 137,506 $ 140,256

$ 663,373 $ 676,640 $ 690,173
$ 166,704 $ 166,704 $ 166,704
$ 830,077 $ 843,344 $ 856,877

$ 579,685 $ 608,711 $ 638,740

$ - $ - $ -

$ 3,317,062 $ 3,317,062 $ 3,317,062

$ - $ - $ -
$ - $ - $ -
$ 579,685 $ 608,711 $ 638,740
$ 579,685 $ 608,711 $ 638,740
$ 173,906 $ 182,613 $ 191,622
$ 405,780 $ 426,097 $ 447,118

$ 830,077 $ 843,344 $ 856,877

136,451 138,632 140,857
Cost of Equity Year 0 1 2 3
10%
Net Income before tax $ -49,003 $ -27,842 $ 440
Depreciation & Amortization $ 217,583 $ 217,583 $ 217,583
Debt Repayment $ 102,273 $ 193,182 $ 257,576
Changes in Working Capital $ - $ - $ -
Capital Expenditure (Gross) $ 3,252,721

Cash Flow $ -3,252,721 $ 270,853 $ 382,923 $ 475,598

Discounted Cash Flow $ -3,252,721 $ 248,979 $ 323,134 $ 367,543
Break even
$ 59,869 year 19
Total Discounted Cash Flow
(Net Present Value) $ 428,986

Debt/Value ratio 0.50 0.49 0.46

Cost of Debt 7.50% 7.50% 7.50%
 4 5 6 7 8 9 10

$ 24,104 $ 49,637 $ 75,132 $ 99,072 $ 120,602 $ 139,581 $ 156,413

$ 217,583 $ 217,583 $ 217,583 $ 217,583 $ 217,583 $ 217,583 $ 217,583
$ 286,195 $ 278,245 $ 241,146 $ 187,558 $ 130,993 $ 81,871 $ 45,484
$ - $ - $ - $ - $ - $ - $ -
$ - $ 1,084,904

$ 527,882 $ 545,466 $ 533,862 $ 504,213 $ 469,178 $ 439,035 $ -665,424

$ 372,336 $ 349,761 $ 310,024 $ 264,494 $ 222,153 $ 187,233 $ -257,267

0.41 0.35 0.28 0.21 0.14 0.08 0.03

7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50%
 11 12 13 14 15 16 17

$ 189,595 $ 204,204 $ 218,617 $ 233,206 $ 248,178 $ 267,007 $ 282,996

$ 192,135 $ 192,135 $ 192,135 $ 192,135 $ 192,135 $ 187,317 $ 187,317
$ 22,236 $ 9,434 $ 3,407 $ 1,019 $ 243 $ 43 $ 5
$ - $ - $ - $ - $ - $ - $ -
$ 194,400

$ 403,966 $ 405,772 $ 414,158 $ 426,360 $ 246,156 $ 454,367 $ 470,318

$ 141,758 $ 129,348 $ 119,983 $ 112,277 $ 58,928 $ 98,884 $ 93,050

0.01 0.00 0.00 0.00 0.00 0.00 0.00

7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50%
 18 19 20 21 22 23 24

$ 299,543 $ 316,669 $ 334,393 $ 367,163 $ 386,142 $ 405,780 $ 426,097

$ 187,317 $ 187,317 $ 187,317 $ 166,704 $ 166,704 $ 166,704 $ 166,704
$ 0 $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ 196,850

$ 486,860 $ 503,986 $ 324,860 $ 533,867 $ 552,846 $ 572,484 $ 592,801

$ 87,566 $ 82,406 $ 48,288 $ 72,142 $ 67,915 $ 63,934 $ 60,185

0.00 - - - - - -
7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50%
 25

$ 447,118
$ 166,704
$ -
$ -

$ 613,822
$ 56,653

-
7.50%