OUTPUT AREA BIG HOLE CAPITAL PROJECT ($000) YEARS Investments 0 1 2 3 6 Land...

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OUTPUT AREA BIG HOLE CAPITAL PROJECT ($000) YEARS Investments 0 1 2 3 6 Land @ sale value Equipment Net working capital @ 5% Total investment Operating Cash Flows Units (thousand tons) Sales $ Variable costs per ton Annual Fixed costs Communication costs Reclaiming costs (after tax) Depreciation FRIT EBIT Interest Taxes Net Income Add back depreciation Add back interest Total operating cash flow Termination Recoveries (after tax) Return of net working capital Equipment net salvage value Land net sale value Total termination cash flow Net Cash Flow Project appraisal (Excel) NPV @15% hurdle rate IRR OUTPUT AREA BIG HOLE CAPITAL PROJECT ($000) YEARS Investments 0 1 2 3 6 Land @ sale value Equipment Net working capital @ 5% Total investment Operating Cash Flows Units (thousand tons) Sales $ Variable costs per ton Annual Fixed costs Communication costs Reclaiming costs (after tax) Depreciation FRIT EBIT Interest Taxes Net Income Add back depreciation Add back interest Total operating cash flow Termination Recoveries (after tax) Return of net working capital Equipment net salvage value Land net sale value Total termination cash flow Net Cash Flow Project appraisal (Excel) NPV @15% hurdle rate IRR

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