Feasibility Assessment Template

Feasibility Assessment 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 project Input cells are shaded in blue. 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, [email protected] 405-744-9818' Rodney Holcomb, [email protected] 405-744-6272

For a Guide to Using the Feasibility Template Click On the Icon Below Template Guide

Acrobat Document

MENU FORWARD TO INPUTS

State University

f a project

on in the input cells. ular situation by turning off the protection. nder another name and retain the original for reference.

n the Icon Below

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 Equity Information Common stock Tradeable common stock (1=yes) Revolving period (years) Dividend rate on common Prefered Stock Dividend Rate on Preferred Stock

Tax Information Property Tax as % of Prop and Plant Income Tax Rate

INPUT PRODUCTS, INITIAL VOLUME, MARGIN PE ANTICIPATED SALES GROWTH RATE Product Name Fertilizer Units tons Initial Volume 20,000 Sales growth 1% Price/unit $230.00

50.00% 8.00% 10 $1,245,000 $622,500 $112,000 7.00%

Product Name Units Initial Volume Sales growth Price/unit

$522,500 0 7 8.0% $100,000 12.0%

C lbs 0 0% $-

Percent Member Business VARIABLE COST OF PRODUCTION PER UNIT Product Unit Fertilizer tons Feed tons C lbs D lbs

0.50% 50.00%

There are also inputs on the "Personnel Expense", "De Payroll Information % of Payroll Tax to Salaries % of Retirement Tax to Salaries % of Employee INS Tax to Salaries Benefits as % of Salaries Wage Inflation

5.00% 15.00% 10.00% 30.00% 1.00%

Utilities Electricity/month Water/month Gas/month Telephone/month Total Utilities

$1,000 $250 $1,000 $200 $2,450

Other Expense Inflation Rate Maintenance as % of Plant & Equip Insurance as % of Plant & Equip Discount rate for NPV calculation

1.00% 3.00% 2.00% 12.00%

Profit Allocation (all percentages relate to before tax income) Percentage to Unallocated Reserve Percentage to Cash Patronage Refund Percentage to Qualified Stock Patraonage Refund Percentage to Non-Qualifited Stock Patronage Refund

MENU FORWARD TO PERSONNEL EXPENSE FORWARD TO DEPRECIATION FORWARD TO EXPENSE PROJECTION FORWARD TO OPERATIONS SUMMARY FORWARD TO RETURN ON INVESTMENT BACK TO INTRODUCTION

5% 25% 35% 35%

AL VOLUME, MARGIN PER UNIT AND ROWTH RATE Product Name Units Initial Volume Sales growth Price/unit Product Name Units Initial Volume Sales growth Price/unit

Feed tons 5,000 1% $200.00 D lbs 0 0% $-

100% ODUCTION PER UNIT VC/unit $200.00 $180.00 $$-

sonnel Expense", "Depreciation", & "Expense Projection" sheets

NEL EXPENSE ATION E PROJECTION ONS SUMMARY ON INVESTMENT N

Depreciation

Return On Investment Quality Percent Discount Rate

0% 0.00%

MENU BACK TO INPUTS FORWARD TO RETURN ON INVESTMENT FORWARD TO OPERATIONS SUMMARY Sales Projections Year 1 Year 2 Year 3 Year 4 Year 5 Fertilizer tons 20,000 20,200 20,402 20,606 20,812 Feed tons 5,000 5,050 5,101 5,152 5,203 C lbs 0 0 0 0 0 D lbs 0 0 0 0 0 25,000 25,250 25,503 25,758 26,015 Gross Sales Projection This sheet summaries the volume and price and sales growth information from the input page. There is no input on th Year 1

Year 2

Fertilizer Total Volume Price/Unit Gross Sales

Year 3

Year 4

Year 5

20,000 $230.00 $4,600,000

20,200 $230.00 $4,646,000

20,402 $230.00 $4,692,460

20,606 20,812 $230.00 $230.00 $4,739,385 $4,786,778

Feed Total Volume Price/Unit Gross Sales

5,000 $200.000 $1,000,000

5,050 $200.000 $1,010,000

5,101 $200.000 $1,020,100

5,152 5,203 $200.000 $200.000 $1,030,301 $1,040,604

C Total Volume Price/Unit Gross Sales

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

D Total Volume Price/Unit Gross Sales

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

TOTAL GROSS SALES

$5,600,000

$5,656,000

$5,712,560

$5,769,686 $5,827,382

Production Expense Fertilizer Feed C D TOTAL VARIABLE EXP.

$4,000,000 $900,000 $$$4,900,000

$4,040,000 $909,000 $$$4,949,000

$4,080,400 $918,090 $$$4,998,490

$4,121,204 $4,162,416 $927,271 $936,544 $$$$$5,048,475 $5,098,960

Year 6 21,020 5,255 0 0 26,275

Year 7 21,230 5,308 0 0 26,538

Year 8 21,443 5,361 0 0 26,803

Year 9 21,657 5,414 0 0 27,071

Year 10 21,874 5,468 0 0 27,342

Year 8

Year 9

Year 10

ut page. There is no input on this page. Year 6

Year 7

21,020 $230.00 $4,834,646

21,230 $230.00 $4,882,993

21,443 $230.00 $4,931,823

21,657 21,874 $230.00 $230.00 $4,981,141 $5,030,952

5,255 $200.000 $1,051,010

5,308 $200.000 $1,061,520

5,361 $200.000 $1,072,135

5,414 5,468 $200.000 $200.000 $1,082,857 $1,093,685

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

0 $0.00 $0

$5,885,656

$5,944,513

$6,003,958

$6,063,998 $6,124,638

$4,204,040 $945,909 $$$5,149,949

$4,246,081 $955,368 $$$5,201,449

$4,288,541 $964,922 $$$5,253,463

$4,331,427 $974,571 $$$5,305,998

### $984,317 $$###

MENU BACK TO INPUTS FORWARD TO RETURN ON INVESTMENT FORWARD TO OPERATIONS SUMMARY

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

$1,245,000 8.00% 50.00% $622,500 10

Beginning Balance Interest Rate Interest

Year 1 $622,500 8.00% $49,800

Year 2 $579,529 8.00% $46,362

Year 3 $533,121 8.00% $42,650

Year 4 $482,999 8.00% $38,640

Year 5 $428,869 8.00% $34,309

Annual Payment Principal

$92,771 $42,971

$92,771 $46,409

$92,771 $50,121

$92,771 $54,131

$92,771 $58,461

Ending Balance

$579,529

$533,121

$482,999

$428,869

$370,407

Working Capital Short Term Interest Rate Interest Amount

$112,000 7.00% $7,840 $54,202

$50,490

$46,480

$42,149

Total Interest Expense

$57,640

Year 6 $370,407 8.00% $29,633

Year 7 $307,269 8.00% $24,582

Year 8 $239,079 8.00% $19,126

Year 9 $165,435 8.00% $13,235

Year 10 $85,899 8.00% $6,872

$92,771 $63,138

$92,771 $68,189

$92,771 $73,644

$92,771 $79,536

$92,771 $85,899

$307,269

$239,079

$165,435

$85,899

$0

$37,473

$32,422

$26,966

$21,075

$14,712

MENU BACK TO INPUTS FORWARD TO RETURN ON INVESTMENT FORWARD TO OPERATIONS SUMMARY 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. Occupation

Salary

Benefits

Overtime%

Overtime

Total

Position #1

$60,000

$18,000

5%

$3,900

$81,900

Position #2

$40,000

$12,000

5%

$2,600

$54,600

Position #3

$25,000

$7,500

0%

$-

$32,500

Position #4

$25,000

$7,500

0%

$-

$32,500

$150,000

$45,000

Total Personnel Costs

$6,500

$201,500

MENU BACK TO INPUTS FORWARD TO RETURN ON INVESTMENT FORWARD TO OPERATIONS SUMMARY This Sheet summaries expenses. The only input is for "supplies and miscellaneous" expenses. Labor

Year 0

Year 1 $150,000 $45,000 $6,500

Year 2 $151,500 $45,450 $6,565

Year 3 $153,015 $45,905 $6,631

Year 4 $154,545 $46,364 $6,697

$201,500

$203,515

$205,550

$207,606

$4,900,000

$4,949,000

$4,998,490

$5,048,475

$29,400

$29,694

$29,991

$30,291

$5,130,900

$5,182,209

$5,234,031

$5,286,371

Fixed Maintenance

$37,350

$37,724

$38,101

$38,482

Insurance

$24,900

$25,149

$25,400

$25,654

Property Tax

$6,225

$6,287

$6,350

$6,414

Depreciation

$59,881

$83,901

$67,281

$55,629

Interest

$57,640

$54,202

$50,490

$46,480

$185,996

$207,263

$187,622

$172,659

Salaries Benefits Overtime Total Labor

$-

Production Expenses Utilities Total Variable

Total Fixed

$-

$-

Other Supplies

$25,000

$10,000

$10,100

$10,201

$10,303

Miscellaneous*

$40,000

$20,000

$20,200

$20,402

$20,606

Total Other

$65,000

$30,000

$30,300

$30,603

$30,909

$66,761

$66,734

$71,078

$75,397

$5,413,657

$5,486,506

$5,523,334

$5,565,336

Income Taxes Total Expenses

$65,000

* Year 0 miscellaneous expenses may include legal fees, licenses, permits and other organizational expenses.

us" expenses. Year 5 $156,091 $46,827 $6,764

Year 6 $157,652 $47,295 $6,832

Year 7 $159,228 $47,768 $6,900

Year 8 $160,820 $48,246 $6,969

Year 9 $162,429 $48,729 $7,039

Year 10 $164,053 $49,216 $7,109

$209,682

$211,779

$213,896

$216,035

$218,196

$220,378

$5,098,960

$5,149,949

$5,201,449

$5,253,463

$5,305,998

$5,359,058

$30,594

$30,900

$31,209

$31,521

$31,836

$32,154

$5,339,235

$5,392,627

$5,446,554

$5,501,019

$5,556,029

$5,611,590

$38,867

$39,255

$39,648

$40,044

$40,445

$40,849

$25,911

$26,170

$26,432

$26,696

$26,963

$27,233

$6,478

$6,543

$6,608

$6,674

$6,741

$6,808

$48,153

$47,268

$46,425

$37,038

$27,672

$27,672

$42,149

$37,473

$32,422

$26,966

$21,075

$14,712

$161,558

$156,708

$151,534

$137,419

$122,895

$117,274

$10,406

$10,510

$10,615

$10,721

$10,829

$10,937

$20,812

$21,020

$21,230

$21,443

$21,657

$21,874

$31,218

$31,530

$31,846

$32,164

$32,486

$32,811

$78,825

$80,954

$83,057

$39,550

$45,963

$44,476

$5,610,836

$5,661,820

$5,712,990

$5,710,152

$5,757,374

$5,806,150

her organizational expenses. 0.00% 0.00%

MENU BACK TO INPUTS FORWARD TO RETURN ON INVESTMENT This sheet summaries income, expenses and net profit. There are no inputs on this sheet Gross Sales Fertilizer Feed C D

Year 0 $0 $0 $0 $0

Year 1 $4,600,000 $1,000,000 $0 $0

Year 2 $4,646,000 $1,010,000 $0 $0

Year 3 $4,692,460 $1,020,100 $0 $0

Year 4 $4,739,385 $1,030,301 $0 $0

Total

$0

$5,600,000

$5,656,000

$5,712,560

$5,769,686

Expenses Variable Fixed Other

$0 $0 $65,000

$5,130,900 $185,996 $30,000

$5,182,209 $207,263 $30,300

$5,234,031 $187,622 $30,603

$5,286,371 $172,659 $30,909

Total Expenses

$65,000

$5,346,896

$5,419,772

$5,452,256

$5,489,939

($65,000)

$256,944

$225,469

$247,403

$261,399

Profit before Patronage ($65,000) Cash Patronage Refund Qualified Patronage Refund Non-Qualified Redeemed Before Tax Income Tax $-

$199,304 $49,826 $69,756 $0 $133,522 $66,761

$171,267 $42,817 $59,943 $0 $133,468 $66,734

$196,913 $49,228 $68,920 $0 $142,156 $71,078

$214,919 $53,730 $75,222 $0 $150,795 $75,397

$66,761

$66,734

$71,078

$75,397

Year 0 Year 1 Year 2 After Tax Profits $(65,000.00) $66,761 $66,734 Depreciation $$59,881 $83,901 Principle $$42,971 $46,409 Additional Asset Purchased $$Common stock div $41,800 $52,961 Prefered dividend $12,000 $12,000 Gross Cash Flow from Operations $196,398 $210,578 Common stock redemption $$Qualified Redemption $$Non-Qualified Redemption $$Cash Flow $(65,000) $99,627 $99,209 Cumulative Cash Flow $34,627 $133,836 (does not consider increases or decreases in working capital loan)

Year 3 $71,078 $67,281 $50,121 $$51,391 $12,000 $207,279 $$$$93,766 $227,602

Year 4 $75,397 $55,629 $54,131 $$52,827 $12,000 $206,248 $$$$87,290 $314,892

EBIT

After Tax Profit

($65,000)

Estimate of Cash Flows

Year 5 $4,786,778 $1,040,604 $0 $0

Year 6 $4,834,646 $1,051,010 $0 $0

Year 7 $4,882,993 $1,061,520 $0 $0

Year 8 $4,931,823 $1,072,135 $0 $0

Year 9 $4,981,141 $1,082,857 $0 $0

Year 10 $5,030,952 $1,093,685 $0 $0

$5,827,382

$5,885,656

$5,944,513

$6,003,958

$6,063,998

$6,124,638

$5,339,235 $161,558 $31,218

$5,392,627 $156,708 $31,530

$5,446,554 $151,534 $31,846

$5,501,019 $137,419 $32,164

$5,556,029 $122,895 $32,486

$5,611,590 $117,274 $32,811

$5,532,011

$5,580,866

$5,629,933

$5,670,602

$5,711,410

$5,761,674

$271,686

$275,609

$279,865

$334,466

$355,603

$356,533

$229,536 $57,384 $80,338 $0 $157,650 $78,825

$238,136 $59,534 $83,348 $0 $161,909 $80,954

$247,444 $61,861 $86,605 $0 $166,113 $83,057

$307,499 $76,875 $107,625 $69,756 $79,100 $39,550

$334,528 $83,632 $117,085 $59,943 $91,927 $45,963

$341,821 $85,455 $119,637 $68,920 $88,951 $44,476

$78,825

$80,954

$83,057

$39,550

$45,963

$44,476

Year 5 $78,825 $48,153 $58,461 $$53,835 $12,000 $207,315 $$$$83,019 $397,911

Year 6 $80,954 $47,268 $63,138 $$54,654 $12,000 $211,570 $$$$81,777 $479,688

Year 7 $83,057 $46,425 $68,189 $$55,136 $12,000 $216,087 $522,500 $$$(441,738) $37,950

Year 8 $39,550 $37,038 $73,644 $$13,857 $12,000 $184,213 $$69,756 $69,756 $14,955 $52,905

Year 9 $45,963 $27,672 $79,536 $$6,059 $12,000 $190,720 $$59,943 $59,943 $33,182 $86,086

Year 10 $44,476 $27,672 $85,899 $$9,143 $12,000 $191,785 $$68,920 $68,920 $15,824 $101,910

Average EBIT $286,498

This Sheet Summaries The Changes in Owner's Equity. There are no inputs on this page Year 0 Year 1 Year 2 Year 3 Common Stock $522,500 $522,500 $522,500 $522,500 Qualified Stock Credits $$69,756 $59,943 $68,920 Non Qualified Stock Credits $$69,756 $59,943 $68,920 Preferred Stock $100,000 $100,000 $100,000 $100,000 Unallocated Equity $9,965 $18,529 $28,374 Total Members Equity

$771,978

$760,916

$788,713

0 $522,500

0 $522,500

0 $522,500

Qualified Stock Credits Issued Qualified Stock Credits Redeemed 1 yr rev Qualified Stock Credits Redeemed 2 yr rev Qualified Stock Credits Redeemed 3 yr rev Qualified Stock Credits Redeemed 4 yr rev Qualified Stock Credits Redeemed 5 yr rev Qualified Stock Credits Redeemed 6 yr rev Qualified Stock Credits Redeemed 7 yr rev Qualified Stock Credits Redeemed 8 yr rev Qualified Stock Credits Redeemed 9 yr rev Qualified Stock Credits Redeemed 10 yr rev Total Qualified Redeemed Total Qualified Stock Credits

$69,756

$59,943 $-

$68,920 $$-

$$69,756

$$59,943

$$68,920

Non-Qualified Stock Credits Issued Non-Qualified Stock Credits Redeemed 1 yr rev Non-Qualified Stock Credits Redeemed 2 yr rev Non-Qualified Stock Credits Redeemed 3 yr rev Non-Qualified Stock Credits Redeemed 4 yr rev Non-Qualified Stock Credits Redeemed 5 yr rev Non-Qualified Stock Credits Redeemed 6 yr rev Non-Qualified Stock Credits Redeemed 7 yr rev Non-Qualified Stock Credits Redeemed 8 yr rev Non-Qualified Stock Credits Redeemed 9 yr rev Non-Qualified Stock Credits Redeemed 10 yr rev Total Non-Qualified Redeemed Total Non-Qualified Stock Credits

$69,756

$59,943 $-

$68,920 $$-

$$69,756

$$59,943

$$68,920

Equity Calculations Common Stock Common Stock Redeemed Total Common Stock

$622,500

$522,500 $522,500

Year 4 $522,500 $75,222 $75,222 $100,000 $39,120

Year 5 $522,500 $80,338 $80,338 $100,000 $50,597

Year 6 $522,500 $83,348 $83,348 $100,000 $62,504

Year 7 $$86,605 $86,605 $100,000 $74,876

Year 8 $$37,868 $37,868 $100,000 $90,251

$$57,141 $57,141 $100,000 $106,977

Year 10 $$50,718 $50,718 $100,000 $124,068

$812,064

$833,772

$851,699

$348,087

$265,987

$321,260

$325,504

0 $522,500

0 $522,500

0 $522,500

$75,222 $$$-

$80,338 $$$$-

$83,348 $$$$$-

$86,605 $$$$$$-

$107,625 $$$$$$$69,756

$117,085 $$$$$$$59,943 $-

$119,637 $$$$$$$68,920 $$-

$$75,222

$$80,338

$$83,348

$$86,605

$69,756 $37,868

$59,943 $57,141

$68,920 $50,718

$75,222 $$$-

$80,338 $$$$-

$83,348 $$$$$-

$86,605 $$$$$$-

$107,625 $$$$$$$69,756

$117,085 $$$$$$$59,943 $-

$119,637 $$$$$$$68,920 $$-

$$75,222

$$80,338

$$83,348

$$86,605

$69,756 $37,868

$59,943 $57,141

$68,920 $50,718

522500 $0

0 $0

Year 9

0 $0

0 $0

38%

MENU BACK TO INPUTS FORWARD TO RETURN ON INVESTMENT BACK TO OPERATION SUMMARY 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 Description

Value Salvage $1,000,000 $30,000 `

Processing Plant #2 #3 #4 #5 Total Buildings

$1,000,000

Equipment and Heavy Rolling Stock Description Feed mill Pellet mill Load out equipment Conveying and metering equipment Feed Trucks Total Equip and Heavy Rolling Stock

Value $50,000 $50,000 $10,000 $50,000 $50,000 $210,000

Total Plant Property and Equipment Land Total Land, Plant Property and Equipment Additional Purchases

$30,000

$1,245,000 $$1,245,000 1

2

3

4

1 $24,872 $2,000 $30,009 $3,000 0 $59,881

2 $24,872 $2,800 $51,429 $4,800 0 $83,901

3 $24,872 $2,800 $36,729 $2,880 0 $67,281

4 $24,872 $2,800 $26,229 $1,728 0 $55,629

Annual Total Depreciation Year Buildings Special Purpose Buildings Equipment and Heavy Rolling Stock Light Truck and Vehicles Additional Depreciation Total Depreciation

Buildings Special Purpose Buildings

39 year Straight Line 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 Special Purpose Buildings Cost Life

$1,000,000 39 $30,000 39 $24,872

$20,000 10

Year 1 2 3 4 5 6 7 8 9 10

Depreciation $2,000 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800

Equipment and Heavy Rolling Stock Year Depreciation 1 $30,009 2 $51,429 3 $36,729 4 $26,229 5 $18,753 6 $18,732 7 $18,753 8 $9,366 Light Trucks and Vehicles Year 1 2 3 4 5 6

Depreciation $3,000 $4,800 $2,880 $1,728 $1,728 $864

Rate 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%

ipment and other property.

Special Purpose Buildings Description Outbuilding Storage shed #3 #4 #5 Total Special Purpose Building

Value $10,000 $10,000

$20,000

Light Trucks and Vehicles Description Delivery truck Company car Forklifts

Value $5,000 $5,000 $5,000

Total Light Trucks and Vehicles

$15,000

5

6

7

8

9

10

5 $24,872 $2,800 $18,753 $1,728 0 $48,153

6 $24,872 $2,800 $18,732 $864 0 $47,268

7 $24,872 $2,800 $18,753

8 $24,872 $2,800 $9,366

9 $24,872 $2,800

10 $24,872 $2,800

0 $46,425

0 $37,038

0 $27,672

0 $27,672

0.06

MENU BACK TO INPUTS BACK TO OPERATION SUMMARY

This sheet summaries the feasibility of the project. It provides net present value, benefit cost ratio and internal rate of The only input is the discount rate. Discount Rate

12.00%

Year Gross Margin Discount Factor PV of Income

0

Total Expense Less Depreciation and Term Interest

$65,000

Cash Expenses Discount Factor PV of Expenses Benefits Less Costs PV Benefits Less PV Costs Total PV of Income $32,802,827 Total PV of Expenses $32,150,267 Net Present Value $652,560 Internal Rate of Return 22.80% PV Benefit/PV Cost Ratio 1.02 Return on Assets (after tax income/total PPE investment)

1 $5,600,000 0.89 $5,000,000

2 $5,656,000 0.8 $4,508,929

3 $5,712,560 0.71 $4,066,087

$5,413,657 $109,681

$5,413,657 $130,263

$5,486,506 $109,930

$1,310,000 1 $1,310,000

$5,303,976 0.89 $4,735,693

$5,283,394 0.8 $4,211,889

$5,376,575 0.71 $3,826,940

($1,310,000) ($1,310,000)

$296,024 $264,307

$372,606 $297,040

$335,985 $239,147

-0.90%

15.86%

13.49%

15.31%

1 $0

Average Return on Assets Payback Period (years) 6 (payback period only displayed if less than 10 years)

16.61%

it cost ratio and internal rate of return

4 $5,769,686 0.64 $3,666,740

5 $5,827,382 0.57 $3,306,613

6 $5,885,656 0.51 $2,981,857

7 $5,944,513 0.45 $2,688,996

8 $6,003,958 0.4 $2,424,898

9 $6,063,998 0.36 $2,186,738

10 $6,124,638 0.32 $1,971,969

$5,523,334 $94,269

$5,565,336 $82,462

$5,610,836 $76,900

$5,661,820 $71,006

$5,712,990 $56,164

$5,710,152 $40,907

$5,757,374 $34,544

$5,429,065 0.64 $3,450,269

$5,482,874 0.57 $3,111,130

$5,533,935 0.51 $2,803,664

$5,590,814 0.45 $2,529,000

$5,656,826 0.4 $2,284,697

$5,669,245 $5,722,830 0.36 0.32 $2,044,387 $1,842,598.11

$340,620 $216,470

$344,508 $195,483

$351,721 $178,193

$353,699 $159,995

$347,132 $140,201

$394,752 $142,352

$401,807 $129,371

16.49%

17.46%

18.02%

15.28%

22.97%

24.88%

23.88%

6

7

8

9

10

Analysis of Member Return

This Sheet Summaries the Member's Return. The only inputs are the tax rates

Cash Patronage Stock Dividends

Member's Income Tax Rate Capital Gains Tax Rate Year 2 Year 3 Year 4 Year 5 $49,826 $42,817 $49,228 $53,730 $57,384 $41,800 $52,961 $51,391 $52,827 $53,835

Qualified Stock Received Non-Qualified Stock Redeemed Qualified Stock Redeemed

$69,756 $$-

$59,943 $$-

$68,920 $$-

$75,222 $$-

$80,338 $$-

Taxable Income Taxable Gain on Stock Member's Income Tax

$161,383

$155,721

$169,539

$181,779

$191,557

$48,415

$46,716

$50,862

$54,534

$57,467

After Tax Cash Income

$43,211

$49,061

$49,758

$52,023

$53,752

Initial Investment

$522,500 Year 1

Sale of Stock

Return on Investment Average ROI for Common

8%

10%

10%

10%

15%

Cash flows

($522,500)

Net Present Value: Common Internal Rate of Return:common

($120,591) 6%

Preferred Stock Return Dividends Return on Investment Average ROI Preferred

9%

12000 12% 12%

$49,061

12000 12%

$49,758

12000 12%

$52,023

12000 12%

$53,752

12000 12%

are the tax rates 30% 28% Year 6 Year 7 Year 8 Year 9 Year 10 $59,534 $61,861 $76,875 $83,632 $54,654 $55,136 $13,857 $6,059 $83,348 $$-

$86,605 $$-

$107,625 $69,756 $69,756

$117,085 $59,943 $59,943

$85,455 $9,143 $119,637 $68,920 $68,920 $-

$197,536

$203,602

$268,113

$266,719

$59,261

$61,081

$80,434

$80,016

$283,155 $$84,946

$54,927

$55,916

$149,811

$129,562

$147,491

11%

$54,927

12000 12%

11%

$55,916

12000 12%

29%

$149,811

12000 12%

25%

$129,562

12000 12%

28%

$147,491

12000 12%