Annex - Economic calculation

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

NPW = 9823
BCR = 1.6

Table 3. Internal Rate of Return Calculation before financing

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
(Incremental Benefit plus amount of loan)			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

NPW = 34013 - 28245 = 5786

Table 7. Interest Rate of Return after financing

IRR = 48 %