Benefits and Costs for fish farming on a plot of 125 m2 square metres.
Table 1. Calculation of Costs
With Project | |||||||||||||
W/o | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||
A. | Investment Cost | ||||||||||||
labour | |||||||||||||
Clearing of land | 4900 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | |||
- Excavation | |||||||||||||
- Pitting, fixing poles structching of wire | 1100 | 110 | 110 | 110 | 110 | 110 | 110 | 110 | 110 | 110 | |||
Materials: | |||||||||||||
Barbed fencing & Poles, nails(transport) | 5652 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | |||
Sub total (A) | 11652 | 310 | 310 | 310 | 310 | 310 | 310 | 310 | 310 | 310 | |||
Contingencies 10 % | 1165 | 31 | 31 | 31 | 31 | 31 | 31 | 31 | 31 | 31 | |||
Total (A) | 12817 | 341 | 341 | 341 | 341 | 341 | 341 | 341 | 341 | 341 | |||
B. | Operating Costs | (Average) | 90 | ||||||||||
Fingerlings | 50.00 | 50.00 | 50.00 | 50.00 | 50.00 | 50.00 | 50.00 | 50.00 | 50.00 | 50.00 | |||
Feed, Manure, Complex | 271.50 | 271.50 | 271.50 | 271.50 | 271.50 | 271.50 | 271.50 | 271.50 | 271.50 | 271.50 | |||
Labour (Family labour) | |||||||||||||
Miscellaneous (Distribution and Repairs, Maintenance) | 200.00 | 200.00 | 200.00 | 200.00 | 200.00 | 200.00 | 200.00 | 200.00 | 200.00 | 200.00 | |||
Sub Total (B) | 90 | 521.50 | 521.50 | 521.50 | 521.50 | 521.50 | 521.50 | 521.50 | 521.50 | 521.50 | 521.50 | ||
Contingencies 10 % | 9 | 52.00 | 52.00 | 52.00 | 52.00 | 52.00 | 52.00 | 52.00 | 52.00 | 52.00 | 52.00 | ||
Total (B) | (rounded) | 573.50 | 573.50 | 573.50 | 573.50 | 573.50 | 573.50 | 573.50 | 573.50 | 573.50 | 573.50 | ||
Total Benefits | (rounded) | 127 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | |
Incremental Benefits | (IB) | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | ||
Costs Investment | (1) | 12817 | 341 | 341 | 341 | 341 | 341 | 341 | 341 | 341 | 341 | ||
Operating and Maintenance | (2) | 90 | 573.50 | 573.50 | 573.50 | 573.50 | 573.50 | 573.50 | 573.50 | 573.50 | 573.50 | 573.50 | |
Total Costs | (1,2) | 90 | 13390 | 914.5 | 914 | 914 | 914 | 914 | 914 | 914 | 914 | 914 | |
Incremental Cost (TC - W/o) | (IC) | 13300 | 824 | 824 | 824 | 824 | 824 | 824 | 824 | 824 | 824 | ||
Incremental Net Benefit (IB - IC) | (9490) | 2986 | 2986 | 2986 | 2986 | 2986 | 2986 | 2986 | 2986 | 2986 |
Table 2. Net Present Worth and Benefit Cost Ration Calculation before financing
Year | Incremental Benefits | Incremental Cost | Discount Factor 13% | Present Worth | |
Incremental Benefits | Incremental Cost | ||||
1 | 3810 | 13300 | 0.885 | 3371 | 11770 |
2 | 3810 | 824 | 0.783 | 2983 | 645 |
3 | 3810 | 824 | 0.653 | 2487 | 538 |
4 | 3810 | 824 | 0.613 | 2344 | 505 |
5 | 3810 | 824 | 0.543 | 2068 | 447 |
6 | 3810 | 824 | 0.480 | 1828 | 395 |
7 | 3810 | 824 | 0.425 | 1619 | 350 |
8 | 3810 | 824 | 0.376 | 1432 | 309 |
9 | 3810 | 824 | 0.333 | 1268 | 274 |
10 | 3810 | 824 | 0.295 | 1123 | 243 |
11 | 3810 | 824 | 0.261 | 994 | 215 |
12 | 3810 | 824 | 0.231 | 880 | 190 |
13 | 3810 | 824 | 0.204 | 777 | 168 |
14 | 3810 | 824 | 0.181 | 689 | 147 |
15 | 3810 | 824 | 0.160 | 609 | 131 |
16 | 3810 | 824 | 0.141 | 537 | 116 |
17 | 3810 | 824 | 0.125 | 476 | 103 |
18 | 3810 | 824 | 0.111 | 422 | 91 |
19 | 3810 | 824 | 0.098 | 373 | 80 |
20 | 3810 | 824 | 0.087 | 331 | 71 |
26611 | 16788 |
NPW = 9823
BCR = 1.6
Table 3. Internal Rate of Return Calculation before financing
Year | Incremental Net Benefit | Discount Factor 35% | Present Worth | Discount Factor at 40 % | Present Worth |
1 | (9490) | 0.741 | (7032) | 0.714 | (7032) |
2 | 2986 | 0.549 | 1639 | 0.510 | 1522 |
3 | 2986 | 0.406 | 1212 | 0.364 | 1212 |
4 | 2986 | 0.301 | 898 | 0.260 | 898 |
5 | 2986 | 0.223 | 666 | 0.186 | 665 |
6 | 2986 | 0.165 | 493 | 0.133 | 492 |
7 | 2986 | 0.122 | 364 | 0.095 | 364 |
8 | 2986 | 0.091 | 271 | 0.068 | 271 |
9 | 2986 | 0.067 | 200 | 0.048 | 200 |
10 | 2986 | 0.050 | 149 | 0.035 | 149 |
11 | 2986 | 0.037 | 110 | 0.025 | 110 |
12 | 2986 | 0.027 | 80 | 0.018 | 80 |
13 | 2986 | 0.020 | 59 | 0.013 | 59 |
14 | 2986 | 0.015 | 44 | 0.009 | 44 |
15 | 2986 | 0.011 | 32 | 0.006 | 32 |
16 | 2986 | 0.008 | 23 | 0.005 | 23 |
17 | 2986 | 0.006 | 17 | 0.003 | 17 |
18 | 2986 | 0.005 | 14 | 0.002 | 5 |
19 | 2986 | 0.003 | 9 | 0.002 | 5 |
20 | 2986 | 0.002 | 9 | 0.001 | 2 |
(746) | (882) |
IRR - 36 %
Table 4. Amortization of loan of Rs. 8200 @ 15 % for a period of 12 years with a monatorium period of 12 years
Year | Outstanding Principal of beginning of each year | Total Amount Payment | Interest due at end of year | Amount of Principal repaid annually |
1 | 8200 | - | 1230 | - |
2 | 8200 | - | 1230 | - |
3 | 8200 | 1633.44 | 1230 | 403.44 |
4 | 7797 | 1633 | 1169.50 | 463.50 |
5 | 7333.48 | 1633 | 1100 | 533 |
6 | 6800.48 | 1633 | 1020 | 613 |
7 | 6188 | 1633 | 928.15 | 705 |
8 | 5483 | 1633 | 822.45 | 810.55 |
9 | 4672.45 | 1633 | 701 | 932.13 |
10 | 3740 | 1633 | 561 | 1072 |
11 | 2668 | 1633 | 400 | 1233 |
12 | 1436 | 1633 | 215 | 1417 |
Difference of Rs. 19 is due to rounding.
Table 5. Calculation of Net Cash Flow after financing
Items | W/o | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Cash In flow | ||||||||||||||
- Gross Value of Production | 1 | 127 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 |
- Loan | 2 | - | 8200 | - | - | - | - | - | - | - | - | - | - | |
- Total Cash in flow | 1+2 | - | 12137 | - | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | 3937 | |
Incremental Cash in flow | ||||||||||||||
(Incremental Benefit plus amount of loan) | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | ||
8200 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total Increment Cost in flow | ICI | 127 | 12010 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 | 3810 |
Cash Out flow | ||||||||||||||
- Investment | 12817 | 341 | 341 | 341 | 341 | 341 | 341 | 341 | 341 | 341 | 341 | 341 | ||
- Operating Cost | 90 | 573 | 573 | 573 | 573 | 573 | 573 | 573 | 573 | 573 | 573 | 573 | 573 | |
- Debt (loan) Servicing | - | - | ||||||||||||
- Repayment | - | - | 403 | 464 | 533 | 613 | 705 | 811 | 932 | 1072 | 1233 | 1418 | ||
- Interest | 1230 | 1230 | 1230 | 1169 | 1100 | 1020 | 928 | 822 | 701 | 561 | 400 | 215 | ||
Total Cash Out flow | 90 | 14620 | 2144 | 2547 | 2547 | 2547 | 2547 | 2547 | 2547 | 2547 | 2547 | 2547 | 2547 | |
Incremental Cash Out flow | ICO | |||||||||||||
Total Cash Out flow - W/o | - | 14530 | 2054 | 2457 | 2457 | 2457 | 2457 | 2457 | 2457 | 2457 | 2457 | 2457 | 2457 | |
Incremental Net Cash flows (ICI - ICO) | (2520) | 1756 | 1353 | 1353 | 1353 | 1353 | 1353 | 1353 | 1353 | 1353 | 1353 | 1353 |
Table 6. Net Present Worth and Benefit Cost ratio after financing Calculation Table
Year | Incremental Cash In flow | Incremental Cash Out flow | Discount Factor 13% | Present Net Worth | |
Incremental Cash In flow | Incremental Cash Out flow | ||||
1 | 12010 | 14620 | 0.885 | 10628 | 12938 |
2 | 3810 | 2144 | 0.783 | 2983 | 1678 |
3 | 3810 | 2547 | 0.693 | 2640 | 1765 |
4 | 3810 | 2547 | 0.613 | 2336 | 1561 |
5 | 3810 | 2547 | 0.543 | 2068 | 1383 |
6 | 3810 | 2547 | 0.480 | 1828 | 1222 |
7 | 3810 | 2547 | 0.425 | 1619 | 1082 |
8 | 3810 | 2547 | 0.376 | 1432 | 957 |
9 | 3810 | 2547 | 0.333 | 1268 | 840 |
10 | 3810 | 2547 | 0.295 | 1123 | 751 |
11 | 3810 | 2547 | 0.261 | 994 | 664 |
12 | 3810 | 2547 | 0.231 | 880 | 588 |
13 | 3810 | 2547 | 0.204 | 777 | 519 |
14 | 3810 | 2547 | 0.181 | 689 | 461 |
15 | 3810 | 2547 | 0.160 | 609 | 407 |
16 | 3810 | 2547 | 0.141 | 537 | 359 |
17 | 3810 | 2547 | 0.125 | 476 | 318 |
18 | 3810 | 2547 | 0.111 | 422 | 282 |
19 | 3810 | 2547 | 0.098 | 373 | 249 |
20 | 3810 | 2547 | 0.087 | 331 | 221 |
34013 | 28245 |
NPW = 34013 - 28245 = 5786
Table 7. Interest Rate of Return after financing
Year | Incremental Net Cash flow | Discount Factor 45% | Present Worth | Discount Factor 50% | Present Worth |
1 | (2520) | 0.690 | (1738) | 0.667 | (1680) |
2 | 1356 | 0.476 | 835 | 0.444 | 779 |
3 | 1353 | 0.328 | 443 | 0.294 | 397 |
4 | 1353 | 0.226 | 305 | 0.198 | 267 |
5 | 1353 | 0.156 | 211 | 0.132 | 178 |
6 | 1353 | 0.108 | 146 | 0.088 | 119 |
7 | 1353 | 0.074 | 100 | 0.059 | 79 |
8 | 1353 | 0.051 | 69 | 0.039 | 52 |
9 | 1353 | 0.035 | 47 | 0.026 | 35 |
10 | 1353 | 0.024 | 32 | 0.017 | 23 |
11 | 1353 | 0.017 | 23 | 0.012 | 16 |
12 | 1353 | 0.012 | 16 | 0.008 | 10 |
13 | 1353 | 0.008 | 10 | 0.005 | 6 |
14 | 1353 | 0.006 | 8 | 0.003 | 4 |
15 | 1353 | 0.004 | 5 | 0.002 | 2 |
16 | 1353 | 0.003 | 4 | 0.002 | 2 |
17 | 1353 | 0.002 | 2 | 0.001 | 1 |
18 | 1353 | 0.001 | 1 | 0.001 | 1 |
19 | 1353 | 0.001 | 1 | 0.000 | - |
20 | 1353 | 0.001 | 1 | 0.000 | - |
521 | 291 |
IRR = 48 %