Cash Flow Example 3 Inntektsprofil - eksempel calculation of cash flow Income profile of project Year År 79111315 Http://www.prosjektledelse.ntnu.no Incom Inntekt e 5 913 11 257 14 605 19 745 17 764 15 130 11 169 7 448 4 436 2 254 This.
Download ReportTranscript Cash Flow Example 3 Inntektsprofil - eksempel calculation of cash flow Income profile of project Year År 79111315 Http://www.prosjektledelse.ntnu.no Incom Inntekt e 5 913 11 257 14 605 19 745 17 764 15 130 11 169 7 448 4 436 2 254 This.
Cash Flow Example 3 Inntektsprofil - eksempel calculation of cash flow Income profile of project Year År 6 7 8 9 10 11 12 13 14 15 16 Http://www.prosjektledelse.ntnu.no Incom Inntekt e 5 913 11 257 14 605 19 745 17 764 15 130 11 169 7 448 4 436 2 254 690 This example will show calculation of a cash flow. Investments start in year 1 and go on over a sixyear period The table shows estimated incomes over entire project life cycle. As shown in the table incomes start from sixth year. Prosjektstyring Rough Schedule We will look at cost sheet of project Preplanning A rough schedule which is shown in left side is set for investment over 5 years.Here we see when the different activities of project will be implemented. Detailed Planning Construction - Section A - Section B - Section C Assembly Prod. start Testing Pilot operation År 7 Year 61 Http://www.prosjektledelse.ntnu.no Year 2 Year 3 Year 4 Year 5 Prosjektstyring Cost Estimate (kNOK ) Cost category Cost Magnitude preplanning 880 Detailed planning 475 Construction section A 313 Construction section B 784 Construction section C 465 Assembly 738 testing 160 Pilot operation 700 Project management 159 Unpredicted 390 SUM Http://www.prosjektledelse.ntnu.no We have prepared a cost estimate for the costs. The needed accumulated investment is little over 5 mill. NOK and the left table shows how large the cost of each activity is. 5 064 Prosjektstyring Investment profile (kNOK) Cost category YEAR 1 YEAR 2 YEAR 3 YEAR 4 COST YEAR 5 AMOUNT Preplanning 880 Detailed planning 350 125 475 Construction section A 110 203 313 Construction section B 784 784 Construction section C 230 880 Assembly 235 490 465 248 738 testing 160 160 Pilot operation 300 400 700 Project management 35 35 35 35 19 159 Unpredicted 80 80 80 80 70 390 1455 1457 840 823 489 5 064 SUM Http://www.prosjektledelse.ntnu.no By dividing the costs on different periods, we can create an investment profile for project. For activity, detail planning, total sum is 475 kNOK that is divided on year 1 and 2, that gives respectively 350 and 125. In addition to investment costs, there will be tax, operation and maintenance costs. In this example, we disregard taxes. Prosjektstyring Operation & Maintenance Cost (kNOK) Cost YearÅ r 6 7 8 9 10 11 12 13 14 15 16 Fixed F ast Part andel K ostnad V Varying ariabel Part andel Total S um Cost k ostnad 150 150 270 270 270 270 270 270 270 120 120 172 307 372 470 395 314 217 135 75 36 10 322 457 642 740 665 584 487 405 345 156 130 Http://www.prosjektledelse.ntnu.no Left table shows operation and maintenance costs of project. We see that these costs do not occur before 6th year; the time that construction is over. Operation and maintenance costs are splited into fixed and variable parts.. Prosjektstyring Cash Flow (kNOK) Cost / Income Inntekt/Utgift Year 1 År 1 Year 2År 2 Year 3 År 3 Year 4 År 4 Year 5 År 5 Sum inntekter Investeringer 1 455 1 457 840 823 489 Driftsutgifter Year 6 År 6 Year 7 År 7 Year 8 År 8 5 913 11 257 14 605 924 370 340 322 457 642 Sum utgifter 1 455 1 457 840 823 489 1 246 827 982 Kontantstrøm -1 455 -1 457 -840 -823 -489 4 667 10 430 13 623 Cost / Income Year 9 Inntekt/Utgift År 9 Sum inntekter 19,745 Investeringer Driftsutgifter 740 Sum utgifter 740 Kontantstrøm 19,005 Year Year 11 Year 12 Year 13 Yea14 Year 15 Year 16 År 10 10 17,764 År 11 15,130 År 12 11,169 År 13 7,448 År 14 4,436 År 15 2,254 År 16 690 665 665 17,099 584 584 14,546 487 487 10,682 405 405 7,043 345 345 4,091 156 156 2,098 130 130 560 Http://www.prosjektledelse.ntnu.no We set up a table for entire years of project life cycle. Where we aggregate operation and maintenance costs and subtract the obtained sum from project incomes in order to calculate the net cash flow for each year. Prosjektstyring Graphical Presentation of Costs 1000 NOK 20 18 The cash flow enjoys both negative and positive amounts. Also from graphical presentation we can see that cash flow ascends from year 0 to year 9, then it descends until end of project. 16 14 12 10 8 6 560 2 098 4 091 7 043 10 682 14 546 17 099 19 005 13 623 10 430 4 667 -489 -823 -840 -1 457 2 -1 455 4 Year Http://www.prosjektledelse.ntnu.no Prosjektstyring