Cotton Ginning Cost and Returns Template

Developed for:
Developed by:

Ag Marketing Resource Center

Phil Kenkel and Rodney Holcomb, Oklahoma State University

This templates is designed to assist you in assessing the feasibility of a typical alfalfa dehy
The template assumes that the operation purchases forage and hay and then sells alfalfa p

Input cells are shaded in green.

Each sheet is currently protected allowing you to only input information in the input cells.
The template can also be modified and expanded to meet your particular situation by turnin
If you choose to modify the template we would advise you to save it under another name a
To get started go to the "Input Page"
For comments or suggestions contact: Phil Kenkel, kenkel@okstate.edu 405-744-9818
John Park, jlpark@ag.tamu.edu 979-845-1751
Cotton Ginning Costs
MENU
INPUTS
UTILITIES
MARKET PROJECTION
LOAN AMORITIZATION
PERSONNEL EXPENSES
EXPENSE PROJECTION
OPERATIONS SUMMARY
DEPRECIATION
EFFICIENCY
EQUIPMENT
RETURN ON INVESTMENT

How to Use This

Template

State University

of a typical alfalfa dehydration operation.

and then sells alfalfa pellets and/or alfalfa meal.

ion in the input cells.

ular situation by turning off the protection.
under another name and retain the original for reference.

Cotton Ginning Costs

ow to Use This

INPUT CAPITAL STRUCTURE AND

EXPENSE INFORMATION
Percent Financed
Long Term Interest Rate
Loan Term
Total Plant Property & Equip
Loan Amount
Working Capital
Short Term Interest Rate

UTILITIES
Electricity cost per Kilowatt

$
$
$

50.00%
7.5%
10
5,629,631
2,814,816
1,675,420
6%

TAX INFORMATION
Property Tax as % of PP&E
Income Tax Rate

0.50%
60.00%

PAYROLL INFORMATION
% of Payroll Tax to Salaries
% of Retirement Tax to Salaries
% of Employee INS Tax to Salaries
Benefits as % of Salaries
Wage Inflation
Hours of Operation

5.00%
15.00%
10.00%
30.00%
1.00%
18

Module hauling distance

Gin to warehouse distance
Warehouse trucking cost/mile
Bales/Semi
Module Transportation cost/ module

OTHER
Expense Inflation Rate
Maintenance as % of PP&E
Insurance as % of PP&E
Discount rate for NPV calc
WORKING CAPITAL
WC req. for Seed Purchases
Additional WC as % of Sales
Additional WC in Dollars
Additional WC for Contingency
Total Working Cap Requirement
Fee
Ginning

Transportation
Module hauling cost/mile

Gas Cost per MCF

MCF Gas Needed/bale
Total Utilities/ Year
Total Utilities/ bale

12
$
$
$

1.14
44
0.27
100
43.95

Bagging and Ties

Compression
Seed Cotton sales
Module transportation
Bales to whs transport
Farmer
Payment from warehouse
Cotton Seed Sales/ton
Sales growth

0.08

3.00
25.00
238,574.72
$4.88

1.00%
1%
1%
10%

$
$
$
$

Cost of Goods Sold

Cotton
$/unit
Cotton seed purchase$
Bags and Ties
$
Tarp Expense/module$

130.00
5.00
25.00

1,198,959
8%
476,461
1,675,420
MENU: Click Below to Move to the Indicated Page

FORWARD TO RESULTS
$2.25 ## OTHER INPUTS ENTRIES ARE IN
$7.50
$8.00
$12.25
$55.00
$3.50
$10.00
$140.00
1%

PERSONNEL EXPENSES
EXPENSE PROJECTIONS
DEPRECIATION

Depreciation

Return On Investment

Quality Percent
Discount Rate

0%
0.00%

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There are no inputs on this page

Bale Needs
Tons of seed cotton delivered
Moisture Content of seed cotton
Moisture target-bale
Dry matter/ton seed cotton
Dry matter/ton ginning cotton
Water removed per ton seed cot
Water removed per bale ginned cotton

Cost per year and bale

Electricity Cost/ Year
Electricity Cost/ bale
Water Cost/ Year
Water Cost/ bale
Natural Gas Cost/ Year
Natural Gas Cost/bale
Telephone Cost/ Year
Telephone Cost/ bale

$
$
$
$
$
$
$
$

18,446
0.13
0.08
1,740
1,840.00
100
0.04

224,874.24
4.60
3,000.00
0.06
8,300.48
0.06
2,400.00
0.05

Natural Gas
Water removed/ton
BTU's/lb. water
BTU's needed/ton
BTU's needed
MCF Gas needed
Gas Cost/MCF
Gas Cost/ Year
Gas Cost/Bale

100.00
1500
150000
2,766,827,755
2766.827755
$
3.00
$8,300
$0.06

Other Utilities
Water Cost/Year
$
Water Cost/ Bale
$
Telphone Cost/Year
Telephone Cost/Bale $

3,000
0.06
$2,400
0.05

Electricity
Horse Power Req./Hour
Horse Power use per year
Electricity Cost/KW
KW/HP
Electricity Cost/ Year
Electricity Cost/ Year
Electricity Cost/ Bale

3,925.00
3,768,000.00
$
0.08
0.746
224,874
$17,990
$4.60

Variable Costs
Transportation
Module Hauling
$
42,323
Transportation to Warehouse $
5,806.67

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There are no inputs on this page

This sheet calculates loan amortization and interest. There are no inputs on this sheet.
Total Investment
Long Term Interest Rate
Percent Financed
Loan Amount
Loan Term

Beginning Balance
Interest Rate
Interest
Annual Payment
Principal
Ending Balance

Working Capital
Short Term Interest Rate
Interest Amount
Total Interest Expense

$5,629,631
7.50%
50.00%
$2,814,816
10

Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
$2,814,816 $2,615,848 $2,401,957 $2,172,025 $1,924,848 $1,659,132
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
$211,111
$196,189
$180,147
$162,902
$144,364
$124,435
$410,079
$198,968

$410,079
$213,890

$410,079
$229,932

$410,079
$247,177

$410,079
$265,715

$410,079
$285,644

$2,615,848 $2,401,957 $2,172,025 $1,924,848 $1,659,132 $1,373,488

$1,675,420
6.00%
$100,525
$311,636

$296,714

$280,672

$263,427

$244,889

$224,960

Year 7
Year 8
$1,373,488 $1,066,421
7.50%
7.50%
$103,012
$79,982

Year 9
$736,324
7.50%
$55,224

Year 10
$381,469
7.50%
$28,610

$410,079
$307,067

$410,079
$330,097

$410,079
$354,855

$410,079
$381,469

$1,066,421

$736,324

$381,469

$0

$203,537

$180,507

$155,749

$129,135

MENU
There are no inputs on this page
1
BACK TO INPUTS
36,354
48,878
FORWARD TO RESULTS
start with number of bales- use inflation rate
Total Bales
48,878
48,878
Total tons of Seed Cotton
39,684
39,684
Total Modules
3,094
3,094
Total Tons of Cotton Seed
18,446
18,446
Year 1
Year 2
Ginning Fees
$1,785,782.20 $1,785,782.20
Bagging and Ties fees $/bale
$366,582.86
$366,582.86
Compression fee
$391,021.71
$391,021.71
Seed cotton sales
$2,582,372.57 $2,582,372.57
Module transportation fees
$170,158.90
$170,158.90
Warehouse paymbner-bales transporation
$171,072.00
$171,072.00
Farmer payments-bale transportation
$488,777.14
$488,777.14
Total Gross Margin
$5,955,767.39 $5,955,767.39

48,878
39,684
3,094
18,446
Year 3
$1,785,782.20
$366,582.86
$391,021.71
$2,582,372.57
$170,158.90
$171,072.00
$488,777.14
$5,955,767.39

0
48,878
39,684
3,094
18,446
Year 4
$1,785,782.20
$366,582.86
$391,021.71
$2,582,372.57
$170,158.90
$171,072.00
$488,777.14
$5,955,767.39

48,878
39,684
3,094
18,446
Year 5
$1,785,782.20
$366,582.86
$391,021.71
$2,582,372.57
$170,158.90
$171,072.00
$488,777.14
$5,955,767.39

48,878
39,684
3,094
18,446
Year 6
$1,785,782.20
$366,582.86
$391,021.71
$2,582,372.57
$170,158.90
$171,072.00
$488,777.14
$5,955,767.39

48,878
39,684
3,094
18,446
Year 7
$1,785,782.20
$366,582.86
$391,021.71
$2,582,372.57
$170,158.90
$171,072.00
$488,777.14
$5,955,767.39

48,878
39,684
3,094
18,446
Year 8
$1,785,782.20
$366,582.86
$391,021.71
$2,582,372.57
$170,158.90
$171,072.00
$488,777.14
$5,955,767.39

48,878
39,684
3,094
18,446
Year 9
$1,785,782.20
$366,582.86
$391,021.71
$2,582,372.57
$170,158.90
$171,072.00
$488,777.14
$5,955,767.39

48,878
39,684
3,094
18,446
Year 10
$1,785,782.20
$366,582.86
$391,021.71
$2,582,372.57
$170,158.90
$171,072.00
$488,777.14
$5,955,767.39

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This sheet allows you to input salaries and overtime assumptions for various positions.
Benefit calculations are based on the percentage you entered on the "Input" sheet.
There are 45 total employees including all shifts that are seasonal and 5 permanent employees.
Occupation

Total # of Employees

Salary

Tot Salary

Benefits

Manager
Assistant Manager
Maintenance Foreman

1
2
2

$60,000
$40,000
$30,000

$60,000
$80,000
$60,000

$18,000
$24,000
$18,000

Total Personnel
Cost

$130,000

$200,000

$60,000

Occupation
Ginner
Ginner Helper
Press Operator
Module Feeders
Lift Truck Operators
Cleaners

Total Cost
Occupation
Seed & Bale Movement

Total Cost

Total # of Employees

Wage
1
1
3
2
2

$12
$12
$10
$10
$10

10

$54.00

Total # of Employees

All Shifts
20
20
20
20
20
-

Benefits
$2,700
$2,700
$0
$5,400.00

All Shifts
10
10
10

Benefits
$2,700
$2,700
$5,400
$2,700
$2,700
$2,700
$18,900.00

All Shifts
10
10
10
10
10
10

Salary
10.00
10.00

2 $

20.00

Tot Salary
$9,000
$9,000
$0
$
18,000

Salary
10.00
10.00
10.00
10.00
10.00
10.00
60.00

Tot Salary
$9,000
$9,000
$18,000
$9,000
$9,000
$9,000
$
63,000

$
$
$
$
$
$
$

4%
3%
1%

Tot Salary Benefits

$21,600
$6,480
$21,600
$6,480
$54,000
$16,200
$36,000
$10,800
$36,000
$10,800
$0
$0
$0
$0
$0
$0
$169,200 $50,760.00

1 $
1 $

7 other Operating 12 hours shifts

Occupation
Total # of Employees
Seed Truck Driver
1
Bale Truck Driver
1
Burr Truck Driver
2
Mechanic
1
Superintendent
1
Scale Clerk
1
Total
7

Overtime%

Total Expense $613,160.00

Overtime

Total

$2,400
$2,400
$600

$80,400
$106,400
$78,600

$5,400

$265,400

Overtime%
Overtime
A.M. Hours Overtime% Overtime
P.M. Hours Overtime% Overtime
0%
$0
10
0%
$0
10
$0
0%
$4,320
10
0%
$0
10
2%
$4,320
0%
$0
10
0%
$0
10
$0
0%
$7,200
10
2%
$7,200
10
$0
0%
$10,800
10
3%
$10,800
10
$0
0%
$0
0%
$0
$0
0%
$0
0%
$0
$0
0%
$0
0%
$0
$0
$ 22,320.00
########
$ 4,320.00
Overtime%
2%
2%

Overtime
$180.00
$180.00
$0.00
$360.00

Total
$11,700
$11,700
$0
$ 23,400.00

Overtime%
2%

Overtime
$180.00
$0.00
$0.00
$0.00
$0.00
$0.00
$180.00

Total
$11,880
$11,700
$23,400
$11,700
$11,700
$11,700
$ 82,080.00

Total
$28,080
$32,400
$70,200
$54,000
$57,600
$0
$0
$0
$242,280

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The only inputs on this page are for "supplies and Miscelaneous expense"
in year 0 and 1

This Sheet summarizes expenses. The only input is for "supplies and miscellaneous" expenses.
Labor
Administrative and Overhead
Salaries
Benefits
Overtime
Total Fixed Labor

Year 0

Total Variable Labor

Total Labor

Year 2

Year 3

$80,400
$106,400
$78,600
$265,400

$81,204
$107,464
$79,386
$268,054

$82,016
$108,539
$80,180
$270,735

$82,836
$109,624
$80,982
$273,442

$169,200
$50,760.00
$22,320
$242,280

$170,892
$51,268
$22,543
$244,703

$172,601
$51,780
$22,769
$247,150

$174,327
$52,298
$22,996
$249,621

18,000
$5,400
$360

$18,180
$5,454
$364

$18,362
$5,509
$367

$18,545
$5,564
$371

63,000
$18,900
$180
105,840

$63,630
$19,089
$182
106,898

$64,266
$19,280
$184
107,967

$64,909
$19,473
$185
109,047

348,120

351,601

355,117

358,668

Ginning Labor
Salaries
Benefits
Overtime
Total Ginning Labor
Seed and Bale Movement
Salaries
Benefits
Overtime
Drivers
Salaries
Benefits
Overtime
Total Logistics Labor

Year 1

$613,520

Production Expenses
Ginning
Bags and Ties
Compression
Seed Cotton Purchase
Module Transportation
Tarp Expense
Gin to Warehouse trucking
Total Production Expenses

$619,655

$625,852

$632,110

244,388.57

244,388.57

244,388.57

$ 2,397,917.39
$
135,972.43
$77,345
$11,613
$ 2,867,236.69

$
$

2,397,917.39
135,972.43
$77,345
$11,613
2,867,236.69

$ 2,397,917.39
$ 135,972.43
$77,345
$11,613
$ 2,867,236.69

$227,123
$8,383
$3,030
$2,424
240,960.47

$229,394
$8,467
$3,060
$2,448
243,370.08

Utilities
Electricity
Natural Gas
Water
Telephone
Total Utilities
Total Variable Expenses

$
$
$
$
$
$613,520

224,874.24
8,300.48
3,000.00
2,400.00
238,574.72
$3,725,467

$3,734,049

$3,742,717

Fixed
Maintenance

55,296

$55,849

$56,408

Insurance

55,296

$55,849

$56,408

Property Tax

56,296

$56,859

$57,428

Depreciation

$599,982

$986,043

$701,459

Interest

$311,636

$296,714

$280,672

Total Fixed

1,078,508

1,451,315

1,152,375

Other Expenses
Supplies

$0

$0

$0

Miscellaneous

$0

$0

$0

Total Other Expenses

$0

$0

$0

$4,803,974

$5,185,363

$4,895,092

Total Expenses

neous expense"

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

$83,665
$110,720
$81,791
$276,176

$84,501
$111,827
$82,609
$278,938

$85,346
$112,946
$83,435
$281,727

$86,200
$114,075
$84,270
$284,545

$87,062
$115,216
$85,113
$287,390

$87,932
$116,368
$85,964
$290,264

$176,070
$52,821
$23,226
$252,118

$177,831
$53,349
$23,459
$254,639

$179,609
$53,883
$23,693
$257,185

$181,405
$54,422
$23,930
$259,757

$183,219
$54,966
$24,169
$262,355

$185,052
$55,515
$24,411
$264,978

$18,731
$5,619
$375

$18,918
$5,675
$378

$19,107
$5,732
$382

$19,298
$5,790
$386

$19,491
$5,847
$390

$19,686
$5,906
$394

$65,558
$19,667
$187
110,138

$66,214
$19,864
$189
111,239

$66,876
$20,063
$191
112,351

$67,545
$20,263
$193
113,475

$68,220
$20,466
$195
114,610

$68,902
$20,671
$197
115,756

362,255

365,878

369,536

373,232

376,964

380,734

$638,431

244,388.57

$644,816

244,388.57

$651,264

244,388.57

$657,776

244,388.57

$664,354

244,388.57

$670,998

244,388.57

$ 2,397,917.39
$ 135,972.43
$77,345
$11,613
$ 2,867,236.69

$ 2,397,917.39
$ 135,972.43
$77,345
$11,613
$ 2,867,236.69

$ 2,397,917.39
$ 135,972.43
$77,345
$11,613
$ 2,867,236.69

$ 2,397,917.39
$ 135,972.43
$77,345
$11,613
$ 2,867,236.69

$ 2,397,917.39
$ 135,972.43
$77,345
$11,613
$ 2,867,236.69

$ 2,397,917.39
$ 135,972.43
$77,345
$11,613
$ 2,867,236.69

$231,688
$8,552
$3,091
$2,473
245,803.78

$234,005
$8,638
$3,122
$2,497
248,261.81

$236,345
$8,724
$3,153
$2,522
250,744.43

$238,709
$8,811
$3,185
$2,548
253,251.88

$241,096
$8,899
$3,216
$2,573
255,784.39

$243,507
$8,988
$3,249
$2,599
258,342.24

$3,751,472

$3,760,314

$3,769,245

$3,778,265

$3,787,375

$3,796,577

$56,972

$57,542

$58,117

$58,698

$59,285

$59,878

$56,972

$57,542

$58,117

$58,698

$59,285

$59,878

$58,002

$58,582

$59,168

$59,760

$60,357

$60,961

$387,757

$387,429

$362,974

$191,632

$45,401

$45,401

$263,427

$244,889

$224,960

$203,537

$180,507

$155,749

823,130

805,983

763,336

572,325

404,836

381,868

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$4,574,602

$4,566,297

$4,532,581

$4,350,590

$4,192,211

$4,178,444

Year 10
$88,812
$117,532
$86,823
$293,167

$186,902
$56,071
$24,655
$267,628

$19,883
$5,965
$398

$69,591
$20,877
$199
116,913

384,541
$677,708

244,388.57

$ 2,397,917.39
$ 135,972.43
$77,345
$11,613
$ 2,867,236.69

$245,942
$9,078
$3,281
$2,625
260,925.66
$3,805,870

$60,477
$60,477
$61,570
$45,401
$129,135

357,061

$0
$0
$0
$4,162,931

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This sheet shows the cost per bale.

There are no inputs on this page

Margin/bale
Ginning Fees
Bagging and Ties fees $/bale
Compression fee
Seed cotton sales
less Seed Cotton Purchases
$
Module transportation fees
Warehouse paymbner-bales transporation
Farmer payments-bale transportation
Total Grosss Margin

1
2
3
4
5
6
$36.54
$36.54
$36.54
$36.54
$36.54
$36.54
$7.50
$7.50
$7.50
$7.50
$7.50
$7.50
$8.00
$8.00
$8.00
$8.00
$8.00
$8.00
$52.83
$52.83
$52.83
$52.83
$52.83
$52.83
(49.06) $ (49.06) $ (49.06) $ (49.06) $ (49.06) $ (49.06)
$3.48
$3.48
$3.48
$3.48
$3.48
$3.48
$3.50
$3.50
$3.50
$3.50
$3.50
$3.50
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$72.79
$72.79
$72.79
$72.79
$72.79
$72.79

Production Expenses
Bags and Ties
Module Transportation

$
$

5.00
2.78

$
$

5.00
2.78

$
$

5.00
2.78

$
$

5.00
2.78

$
$

5.00
2.78

$
$

5.00
2.78

Total Production Expenses

7.78

7.78

7.78

7.78

7.78

7.78

Personnel Expense
Fixed Labor
Ginning Labor
Logistics Labor
Total Variable Labor
Total Labor

$
$
$

1
2
3
4
5
6
$5.43
$5.48
$5.54
$5.59
$5.65
$5.71
$4.96
$5.01
$5.06
$5.11
$5.16
$5.21
2.17 $
2.19 $
2.21 $
2.23 $
2.25 $
2.28
7.12 $
7.19 $
7.27 $
7.34 $
7.41 $
7.49
12.55 $ 12.68 $ 12.80 $ 12.93 $ 13.06 $ 13.19

Total Variable Expenses

20.33

$ 20.46

$ 20.59

$ 20.71

$ 20.84

$ 20.97

$
$
$
$

$
$
$
$

$
$
$
$

$
$
$
$

$
$
$
$

$
$
$
$

$
$
$
$
$
$

4.60
0.17
0.06
0.05
$4.88
1.13
1.13
1.15
12.28
6.38
31.83

52.16

$ 60.01

Fixed Expense
Electricity
Natural Gas
Water
Telephone
Total Utilities
Maintainence
Insurance
Property Tax
Depreciation
Interest
Total Fixed Expense
Total Expense per Bale

$
$
$
$
$
$

4.65
0.17
0.06
0.05
$4.93
1.14
1.14
1.16
20.17
6.07
39.55

$
$
$
$
$
$

4.69
0.17
0.06
0.05
$4.98
1.15
1.15
1.17
14.35
5.74
33.54

$ 54.12

$
$
$
$
$
$

4.74
0.17
0.06
0.05
$5.03
1.17
1.17
1.19
7.93
5.39
26.90

$ 47.61

$
$
$
$
$
$

4.79
0.18
0.06
0.05
$5.08
1.18
1.18
1.20
7.93
5.01
26.65

$ 47.49

$
$
$
$
$
$

4.84
0.18
0.06
0.05
$5.13
1.19
1.19
1.21
7.43
4.60
25.88

$ 46.85

7
8
9
10
$36.54
$36.54
$36.54
$36.54
$7.50
$7.50
$7.50
$7.50
$8.00
$8.00
$8.00
$8.00
$52.83
$52.83
$52.83
$52.83
$ (49.06) $ (49.06) $ (49.06) $ (49.06)
$3.48
$3.48
$3.48
$3.48
$3.50
$3.50
$3.50
$3.50
$10.00
$10.00
$10.00
$10.00
$72.79
$72.79
$72.79
$72.79

$
$

5.00
2.78

$
$

5.00
2.78

$
$

5.00
2.78

$
$

5.00
2.78

7.78

7.78

7.78

7.78

7
8
9
10
$5.76
$5.82
$5.88
$5.94
$5.26
$5.31
$5.37
$5.42
$
2.30 $
2.32 $
2.34 $
2.37
$
7.56 $
7.64 $
7.71 $
7.79
$ 13.32 $ 13.46 $ 13.59 $ 13.73
$ 21.11

$ 21.24

$ 21.37

$ 21.51

$
$
$
$

$
$
$
$

$
$
$
$

$
$
$
$

$
$
$
$
$
$

4.88
0.18
0.07
0.05
$5.18
1.20
1.20
1.22
3.92
4.16
22.07

$ 43.18

$
$
$
$
$
$

4.93
0.18
0.07
0.05
$5.23
1.21
1.21
1.23
0.93
3.69
18.75

$ 39.99

$
$
$
$
$
$

4.98
0.18
0.07
0.05
$5.29
1.23
1.23
1.25
0.93
3.19
18.38

$ 39.76

$
$
$
$
$
$

5.03
0.19
0.07
0.05
$5.34
1.24
1.24
1.26
0.93
2.64
17.98

$ 39.49

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This sheet summaries income, expenses and net profit. There are no inputs on this sheet
Gross Sales
Gross Margin

Year 0
$0

Year 1
$ 5,955,767.39

Year 2
$ 5,955,767.39

Year 3
$ 5,955,767.39

Year 4
$ 5,955,767.39

Year 5
$ 5,955,767.39

Total

$0

$5,955,767

$5,955,767

$5,955,767

$5,955,767

$5,955,767

Expenses
Variable
Fixed
Other

$613,520
$0
$0

$3,725,467
$1,078,508
$0

$3,734,049
$1,451,315
$0

$3,742,717
$1,152,375
$0

$3,751,472
$823,130
$0

$3,760,314
$805,983
$0

Total Expenses

$613,520

$4,803,974

$5,185,363

$4,895,092

$4,574,602

$4,566,297

($613,520)

$1,151,793

$770,404

$1,060,676

$1,381,166

$1,389,470

Before Tax Profit

Tax
After Tax Profit

######## $
($245,408)

691,076
$460,717

462,242

$308,162

636,405

$424,270

828,699

$552,466

833,682
$555,788

Estimate of Cash Flows

Year 0
Year 1
Year 2
After Tax Profits
######## $
460,717 $
308,162
Depreciation
$
$
599,982 $
986,043
Principle
$
$
198,968 $
213,890
Cash Flow
######## $
861,732 $
1,080,314
(does not consider increase or decrease in working capital loan)

$
$
$
$

Year 3
424,270
701,459
229,932
895,797

$
$
$
$

Year 4
552,466
387,757
247,177
693,046

$
$
$
$

Year 5
555,788
387,429
265,715
677,502

Year 6
$ 5,955,767.39

Year 7
$ 5,955,767.39

Year 8
$ 5,955,767.39

Year 9
$ 5,955,767.39

Year 10
$ 5,955,767.39

$5,955,767

$5,955,767

$5,955,767

$5,955,767

$5,955,767

$3,769,245
$763,336
$0

$3,778,265
$572,325
$0

$3,787,375
$404,836
$0

$3,796,577
$381,868
$0

$3,805,870
$357,061
$0

$4,532,581

$4,350,590

$4,192,211

$4,178,444

$4,162,931

$1,423,187

$1,605,178

$1,763,556

$1,777,323

$1,792,837

853,912

$569,275

$
$
$
$

Year 6
569,275
362,974
285,644
646,604

963,107

$642,071

$
$
$
$

Year 7
642,071
191,632
307,067
526,636

1,058,134

$705,423

$
$
$
$

Year 8
705,423
45,401
330,097
420,726

1,066,394

$710,929

$
$
$
$

Year 9
710,929
45,401
354,855
401,476

1,075,702
$717,135

$
$
$
$

Year 10
717,135
45,401
381,469
381,067

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This sheet calculates depreciation. You enter descriptions and values for buildings, equipment and other property.
Depreciation
Buildings
39 year Straight Line
Special Purpose Buildings 10 year Straight Line
Equipment and Heavy Rolling7Stock
Yr MACRS with half year convention
Light Trucks and Vehicles
5 Yr MACRS with half year convention

Buildings
#1
#2
#3
#4
#5
Total Buildings

Description
Buildings
Site Improvement

Equipment and Heavy Rolling Stock

Description
#1
Ginning Equipment
#2
#3
Installation
#4
Miscellaneous
#5
Total Equip and Heavy Rolling Stock
Total Plant Property and Equipment
Land
Total Land, Plant Property and Equipment

Value
Salvage
$ 1,520,653.00 $ 50,000.00
$ 300,000.00
$
$
$
$ 1,820,653.00 $ 50,000.00

Value
$ 3,178,714.00
$
80,000.00
$
20,000.00
$
$ 3,278,714.00
$ 5,529,631.00
$ 100,000.00
$ 5,629,631.00

Annual Total Depreciation

Year
Buildings
Special Purpose Buildings
Equipment and Heavy Rolling Stock
Light Truck and Vehicles

1
$45,401
$0
$468,528
$86,053

2
$45,401
$0
$802,957
$137,684

3
$45,401
$0
$573,447
$82,611

4
$45,401
$0
$292,789
$49,566

Total Depreciation

$599,982

$986,043

$701,459

$387,757

Buildings
39 year Straight Line
Special Purpose Buildings 10 year with percentage from table
Equipment and Heavy Rolling7Stock
year with percentage from table
Light Trucks and Vehicles
5 year with percentage from table

Buildings
Cost
Life
Salvage
$
Period
Depreciation per year for 39 years

$1,820,653
39
50,000.00
39
$45,401

Special Purpose Buildings

Cost
Life

$0
10

Year

Depreciation
1
2
3
4
5
6
7
8
9
10

Rate
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

Equipment and Heavy Rolling Stock

Year
Depreciation
1
$468,528
2
$802,957
3
$573,447
4
$409,511
5
$292,789
6
$292,461
7
$292,789
8
$146,231
Light Trucks and Vehicles
Year
1
2
3
4
5
6

Depreciation
$86,053
$137,684
$82,611
$49,566
$49,566
$24,783

10%
14%
14%
14%
14%
14%
14%
14%
14%
14%

Rate
14.29%
24.49%
17.49%
12.49%
8.93%
8.92%
8.93%
4.46%

Rate
20.00%
32.00%
19.20%
11.52%
11.52%
5.76%

uipment and other property.

Special Purpose Buildings

Description
Value
#1
$
#2
$
#3
$
#4
$
#5
$
Total Special Purpose Building $
Light Trucks and Vehicles
Description
#1
Forklifts
#2
Trucks and trailers
#3
#4
#5
Total Light Trucks and Vehicles

Value
$ 80,264.00
$ 350,000.00
$
$
$
$ 430,264.00

5
$45,401
$0
$292,461
$49,566

6
$45,401
$0
$292,789
$24,783

7
$45,401
$0
$146,231

8
$45,401
$0
$0

9
$45,401
$0

10
$45,401
$0

$387,429

$362,974

$191,632

$45,401

$45,401

$45,401

0.0613

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input cells are in light green

This sheet allows you to compare the relationship between input and output.
Module weight
25000
Bale weight-lbs/bale
480

Picker
Harvest Compostion

30%

Strip/Extr Stripper
30%

Average
40%

Lint/seed cotton
Cotton seed /bale
Trash
Lbs. seed cotton/bale
Lbs. Cotton Seed/Bale
Efficiency relative to Picker

35%
55%
10%
1,371
754
100%

32%
50%
18%
1,500
750
91%

24%
38%
38%
2,000
760
69%

Bales/Ton Cotton Seed

Bales/module
Average bales/ module
Total Modules
Total Tons of Cotton Seed
Rated hourly capacity
Percent downtime
Actual capacity w downtime
Gin capacity actual/rated
Actual capacity by type
Effective daily capacity
Average daily capacity

0.69
18.23
15.80
3094
60201
60.00
11%
53.33
88.89%
88.89%
960
815

0.75
16.67

1.00
12.50

Bales/Hours
Ginning/Days
Transportation cost /# bales
Capacity.

6
2
38.60

110.64
0.636363636
1272

81.27%
878

60.95%
658

1,624
755

0.81
15.80

OPERATIONAL SUMMARY
Season Length (days)
Rated Capacity (bph)
Hours Ginned Daily
Daily Downtime Hours
Max. Seasonal Capacity (bales)
Hiring Period-Ginning Crew

bph=bales per hour

815

60
60
18
2
48,878
90

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Back to Utilities
This sheet list the equipment used along with the quantity, horsepower and dollars.
Quantity
15
1
1
1
1
1
1
8
2
1
1
1
1
1
1
1
1
1
1
1
1
1

Equipment
Green boll and rock trap
Air-line Cleaner
Feed Control
Tower Drier
Cylinder Cleaner
Stick Machine
Extractor Feeder
Gin Stand
Lint Cleaner
Press
Unloader
Module Trucks
Distributor
Overflow system
Cotton seed storage
Mote Fan
Mote Cleaner
Mote Trash Fan
Battery Condenser and Baling System
Master Trash Fan
Bale Storage
Cyclone robber system

Horsepower
175
25
25
25
25
25
25
75
25
25
25

25

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

Total

925

$ 1,275,000.00

25
25
25
100
25
100
25
100

Dollars
In Use
25,000.00
25,000.00
25,000.00
50,000.00
25,000.00
25,000.00
25,000.00
50,000.00
50,000.00
300,000.00
25,000.00
100,000.00
25,000.00
25,000.00
100,000.00
25,000.00
25,000.00
25,000.00
250,000.00
25,000.00
25,000.00
25,000.00
1

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

Horsepower in use
2625
25
25
25
25
25
25
600
50
25
25
0
25
25
25
100
25
100
25
100
0
25
0
3925

Total Dollars
$
375,000.00
$
25,000.00
$
25,000.00
$
50,000.00
$
25,000.00
$
25,000.00
$
25,000.00
$
400,000.00
$
100,000.00
$
300,000.00
$
25,000.00
$
100,000.00
$
25,000.00
$
25,000.00
$
100,000.00
$
25,000.00
$
25,000.00
$
25,000.00
$
250,000.00
$
25,000.00
$
25,000.00
$
25,000.00
$ 2,025,000.00

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This sheet summaries the feasibility of the project. It provides net present value, benefit cost ratio and internal rate
The only input is the discount rate. Page down to enter the B44results of your sensitivity analysis+B7
Discount Rate
Year
Gross Margin
Discount Factor
PV of Income

10.00%

Scale Down
0

59,557,674

Total Expense
Less Depreciation and Term Interest
Cash Expenses
Discount Factor
PV of Expenses

Benefits Less Costs

PV Benefits Less PV Costs

46,673,305
-

0.6

1
$ 5,955,767
0.909091
$ 5,414,334

2
$ 5,955,767
0.826446
$ 4,922,122

1.000000
-

5,629,631

$ 4,803,974
$ 811,094

$ 4,803,974
$ 1,182,231

5,629,631
1.000000
5,629,631

$ 3,992,881
0.909091
$ 3,629,892

$ 3,621,743
0.826446
$ 2,993,176

(5,629,631) $ 1,962,887
(5,629,631) $ 1,784,442

$ 2,334,025
$ 1,928,946

$
$
$

Total PV of Income
$
96,153,286
Total PV of Expenses
$
77,402,969
Net Present Value
$
18,750,317
Internal Rate of Return
31.86%
PV Benefit/PV Cost Ratio
1.2422
Payback Period
3
*Payback Period only displayed if less than 10 years
Return on Assets (based on after tax profit)
(after tax profits/PP&E investment)
Average Return on Assets
15.04%
Return on Equity (after tax profits/equity)
Average Return on Equity
30.09%
NPV
IRR
Picker-Strip/Extr-Stripper
$
18,750,317
15-30-55
$
6,954,870
25-30-45
$
8,296,243
30-30-40
$
8,966,929
35-30-35
$
9,637,615
40-30-30
$
10,308,301
$
48,877.71 $
18,750,317
NPV
IRR
Bales/ Days of operation
40731/50
$
3,975,120
48,877/ 60
$
8,966,929
52950/65
$
11,462,833
57288/70
$
13,958,738

12.28%

8.21%

24.55%

16.42%

B/C
31.86%
15.68%
17.67%
18.64%
19.60%
20.55%
31.86%

ROA
1.2422
1.0641
1.0743
1.0792
1.0839
1.0885
1.2422

B/C
11.02%
18.64%
22.18%
25.58%

15.04%
7.27%
8.16%
8.60%
9.04%
9.49%
15.04%
ROA

1.0406
1.0792
1.0948
1.1085

5.32%
8.60%
10.25%
11.89%

Breakeven volume is 65% of full 60 day day capacity or 31,771 bales/year

Seed Margin
NPV
IRR
B/C
ROA
$10.00 $
18,750,317
31.86%
1.2422
15.04%
$
20.00 $
8,966,929
18.64%
1.0792
8.60%
$
15.00 $
5,667,418
13.71%
1.0486
6.42%
$
10.00 $
2,367,906
8.35%
1.0198
4.25%
$
5.00 $
(931,605)
2.30%
0.9924
2.07%
Interest Rate
7.5%
6.5%
7.5%
8.5%
9.5%

NPV
IRR
B/C
ROA
$ 18,750,317.41
31.86%
1.2422
15.04%
$
9,002,864
18.68%
107.95%
8.80%
$
8,966,929
18.64%
107.92%
8.60%
$
8,931,580
18.60%
107.88%
8.40%
$
8,896,813
18.56%
107.85%
8.19%

1
****

3
3

4
4

enefit cost ratio and internal rate of return

sitivity analysis+B7

3
$ 5,955,767
0.751315
$ 4,474,656

4
$ 5,955,767
0.683013
$ 4,067,869

5
$ 5,955,767
0.620921
$ 3,698,063

6
$ 5,955,767
0.564474
$ 3,361,875

7
$ 5,955,767
0.513158
$ 3,056,250

8
$ 5,955,767
0.466507
$ 2,778,409

9
$ 5,955,767
0.424098
$ 2,525,827

$ 5,185,363
$ 881,606

$ 4,895,092
$ 550,659

$ 4,574,602
$ 531,793

$ 4,566,297
$ 487,409

$ 4,532,581
$ 294,644

$ 4,350,590
$ 125,383

$ 4,192,211
$ 100,626

$ 4,303,757
0.751315
$ 3,233,477

$ 4,344,433
0.683013
$ 2,967,306

$ 4,042,809
0.620921
$ 2,510,266

$ 4,078,889
0.564474
$ 2,302,426

$ 4,237,937
0.513158
$ 2,174,732

$ 4,225,207
0.466507
$ 1,971,090

$ 4,091,585
0.424098
$ 1,735,232

$ 1,652,010
$ 1,241,179

$ 1,611,335
$ 1,100,563

$ 1,912,958
$ 1,187,797

$ 1,876,879
$ 1,059,449

$ 1,717,830
$ 881,519

$ 1,730,560
$ 807,319

$ 1,864,182
$ 790,595

11.30%

14.72%

14.81%

15.17%

17.11%

18.80%

18.94%

22.61%

29.44%

29.62%

30.34%

34.22%

37.59%

37.89%

ROE

Payback
30.09%
3
14.55%
6
16.32%
5
17.20%
5
18.09%
5
18.98%
5
30.09%
3
ROE
Payback
10.63%
17.20%
20.49%
23.78%

7
5
5
4

ROE
30.09%
17.20%
12.85%
8.49%
4.14%
ROE
30.09%
17.60%
17.20%
16.80%
16.39%

5
5

Payback
3
5
6

Payback
3
5
5
5
5

6
6

7
7

8
8

9
9

10
10

10
$ 5,955,767
0.385543
$ 2,296,206
$ 4,178,444
$
74,012
$ 4,104,433
0.385543
$ 1,582,437
$ 1,851,335
$ 713,770

19.11%

38.22%