Been trying to figure out the NPV of the cash flows of our 25% in SC. Would like to see if anyone can discuss on it.
Based on CUU presentation. We get $15 million per year on the first 5 years of production, then $113 million per year on the next 16 years.
If I used a 8% interest rate. 0 compounding. I get this.
For the Cash Flow Series
NPV = $740.61
Cash Flow Stream Detail
| Period |
Cash Flow |
Present Value |
| 0 |
0.00 |
0.00 |
| 1 |
15.00 |
13.89 |
| 2 |
15.00 |
12.86 |
| 3 |
15.00 |
11.91 |
| 4 |
15.00 |
11.03 |
| 5 |
15.00 |
10.21 |
| 6 |
113.00 |
71.21 |
| 7 |
113.00 |
65.93 |
| 8 |
113.00 |
61.05 |
| 9 |
113.00 |
56.53 |
| 10 |
113.00 |
52.34 |
| 11 |
113.00 |
48.46 |
| 12 |
113.00 |
44.87 |
| 13 |
113.00 |
41.55 |
| 14 |
113.00 |
38.47 |
| 15 |
113.00 |
35.62 |
| 16 |
113.00 |
32.98 |
| 17 |
113.00 |
30.54 |
| 18 |
113.00 |
28.28 |
| 19 |
113.00 |
26.18 |
| 20 |
113.00 |
24.24 |
| 21 |
113.00 |
22.45 |
| |
Total: |
740.61 |
If I changed that interest rate to 5%.
This is the figure.
For the Cash Flow Series
NPV = $1,024.50
Cash Flow Stream Detail
| Period |
Cash Flow |
Present Value |
| 0 |
0.00 |
0.00 |
| 1 |
15.00 |
14.29 |
| 2 |
15.00 |
13.61 |
| 3 |
15.00 |
12.96 |
| 4 |
15.00 |
12.34 |
| 5 |
15.00 |
11.75 |
| 6 |
113.00 |
84.32 |
| 7 |
113.00 |
80.31 |
| 8 |
113.00 |
76.48 |
| 9 |
113.00 |
72.84 |
| 10 |
113.00 |
69.37 |
| 11 |
113.00 |
66.07 |
| 12 |
113.00 |
62.92 |
| 13 |
113.00 |
59.93 |
| 14 |
113.00 |
57.07 |
| 15 |
113.00 |
54.35 |
| 16 |
113.00 |
51.77 |
| 17 |
113.00 |
49.30 |
| 18 |
113.00 |
46.95 |
| 19 |
113.00 |
44.72 |
| 20 |
113.00 |
42.59 |
| 21 |
113.00 |
40.56 |
| |
Total: |
1,024.50 |
Still get us around the $1.60-$2+ range.
Keep in mind after opimtization studies and reducing the waste portion in the FS, that $113 figure should be the low end of the cash flow from SC.
