Island Power (IPWR)

Incremental Earning forecast for the project (Purchasing machine outright) from the year 2017-2022.
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
2017 2018 2019 2020 2021 2022 TOTAL
Income 15.42 15.88 16.36 15.87 15.87 15.87
Rent (130,000 USD for 5 years) 2,064,738.00 2,126,332.00 2,062,491.60 2,063,100.00 2,062,450.00 10,379,111.60
-
Total Income - 2,064,738 2,126,332 2,062,492 2,063,100 2,062,450 10,379,111.60
Expenses Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Installation & logistic to Third party (MVR1,00,000) (700,000.00) (150,000.00) (150,000.00) (1,000,000.00) 2017 2018 2019 2020 2021 2022
Additional Cost due to increase in fuel cost
(1,000,000*20/100) (161,000.00) (39,000.00) (34,500.00) (234,500.00) 360,000 270,000.00 202,500.00 151,875.00 113,906.25 85,429.69 20,000
- 25 25 25 25 25
- 90,000.00 67,500.00 50,625.00 37,968.75 28,476.56
Option1 : Buying Machine - 15.42 15.88 16.36 15.87 15.87 15.87 15.87
Depreciation (1,387,800.00) (1,072,075.50) (828,042.75) (602,386.37) (451,923.05) (4,342,227.67) 1,387,800.00 1,072,075.50 828,042.75 602,386.37 451,923.05 1,355,341.99 317,300.00
Maintenance Cost (MVR231,300) (231,300.00) (231,300.00) (231,300.00) (231,300.00) (231,300.00) (1,156,500.00) 1,038,041.99
Loss on sale of Machinery (1,038,041.99) (1,038,041.99)
Total Expenses (1387800.00) (2164375.50) (1248342.75) (1018186.37) (683223.05) (1269341.99) (7771269.66)

Earning before interest and tax (EBIT) (1,387,800.00) (99,637.50) 877,989.25 1,044,305.23 1,379,876.95 793,108.01 2,607,841.94
Income Tax (30%) 416,340.00 29,891.25 (263,396.78) (313,291.57) (413,963.09) (237,932.40) -782,352.58

Net Income / (Profit / (loss) for the year) (971,460.00) (69,746.25) 614,592.48 731,013.66 965,913.87 555,175.61 3,390,194.52

Island Power (IPWR)

Forecast Cash flow for the project (Purchasing machine outright) from the year 2017-2022.
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
2017 2018 2019 2020 2021 2022 TOTAL
Cash flow from Operating activities
Profit Before Taxations (1,387,800.00) (99,637.50) 877,989.25 1,044,305.23 1,379,876.95 793,108.01 2,607,841.94
Adjustment for : -
Plus : Depreciation 1,387,800.00 1,072,075.50 828,042.75 602,386.37 451,923.05 1,355,341.99 5,697,569.66
Plus : Income Tax (416,340.00) (29,891.25) 263,396.78 313,291.57 413,963.09 544,420.18
Less : Capital Allowance (46,264.86) (46,264.86)
-
Net Cash from Operating activities - 556,098.00 1,676,140.75 1,910,088.38 2,145,091.57 2,516,148.22 8,803,566.92
Cash flow from Investing activities
Purchase of Machinery (4,440,960.00) (1,143,547.20) (5,584,507.20) 360000 360000
Proceed from sale of Machinery 317,300.00 317,300.00 80 20
Net cash used in Investing activities (4,440,960.00) (1,143,547.20) - - - 317,300.00 (5,267,207.20) 288000 72000

Cash Flow (4,440,960.00) (587,449.20) 1,676,140.75 1,910,088.38 2,145,091.57 2,833,448.22 3,536,359.72

NPV (4,440,960.00) (510,825.39) 1,267,403.21 1,255,914.11 1,226,463.07 1,408,724.54 £206,719.54

206,719.54

IRR 16.38%
16.38%
 Cash flow statement
2017 2018 2019 2020 2021 2022
Cash Flow from Operations :
Revenues
Interest Received
Net Cash Flow from Operation

Cash Flow from investing :

Upgrades to equipment
Proceeds from eqipment sale
Net Cash Flow from Investing

Cash Flow from Financing

120 120 120 120 1120

£1,000.00
1600 907.8829691498 107.1428571429 95.6632653061 85.4136297376 76.2621694086 635.5180784048
Island Power (IPWR)
Incremental Earning forecast for the project (Finance lease option) from the year 2017-2022.
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
2017 2018 2019 2020 2021 2022 Total
Income 15.42 15.88 16.36 15.87 15.87 15.87
Rent (130,000 USD for 5 years) 2,064,738 2,126,332 2,062,492 2,063,100 2,062,450 10,379,111.60
-
Total Income 2,064,738 2,126,332 2,062,492 2,063,100.00 2,062,450 10,379,112
Expenses

Installation & logistic to Third party (MVR1,00,000) (700,000.00) (150,000.00) (150,000.00)

Additional Cost due to increase in fuel cost

(1,000,000*20/100) (161,000.00) (39,000.00) (34,500.00) (234,500.00)

Option 3 : Finance Lease 0.00 10,405,000 7,803,750 5852812.5 4389609.38 3,292,207.03

Depreciation (2,601,250) (1,950,938) (1,463,203) (1,097,402) (823,052) (7,935,844.73) 10,405,000 2,601,250 1,950,937.50 1463203.13 1097402.34 823,051.76
Maintenance Cost (MVR231,300) (231,300) (231,300) (231,300) (231,300) (231,300) (1,156,500.00) 25 7,803,750 5,852,812.50 4,389,609.38 3,292,207.03 2,469,155.27
Total Expenses (3,693,550.00) (2,371,237.50) (1,879,003.13) (1,328,702.34) (1,054,351.76) (9,326,844.73)

Earning before interest and tax (EBIT) (1,628,812.00) (244,905.50) 183,488.48 734,397.66 1,008,098.24 1,052,266.87
Income Tax (30%) 488,643.60 73,471.65 (55,046.54) (220,319.30) (302,429.47) (15,680.06)

Net Income / (Profit / (loss) for the year) (1,140,168.40) (171,433.85) 128,441.93 514,078.36 705,668.77 1,036,586.81

Island Power (IPWR)

Forecast Cash flow for the project (Finance Lease option) from the year 2017-2022.
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
2017 2018 2019 2020 2021 2022 TOTAL
Cash flow from Operating activities
Profit Before Taxations (1,628,812.00) (244,905.50) 183,488.48 734,397.66 1,008,098.24 1,052,266.87
Adjustment for : Capital Allowance Calculation
Add :Depreciation (2,601,250.00) (1,950,937.50) (1,463,203.13) (1,097,402.34) (823,051.76) (7,935,844.73)
Plus : Income Tax (488,643.60) (73,471.65) 55,046.54 220,319.30
Capital
Less : Capital Allowance - - - - - Year Depreciation Allowance (25%) Difference Tax liability (30%)
Net Cash from Operating activities - (4,230,062.00) (2,195,843.00) (1,279,714.65) (363,004.69) 185,046.48 (7,883,577.85) Year 1 - 2,601,250.00 - - 2,601,250.00 -
Cash flow from Financing activities - Year 2 - 1,950,937.50 - - 1,950,937.50 - 585,281.25
Proceeds from finance lease liabilities - (2,018,000.00) (2,018,000.00) (2,018,000.00) (2,018,000.00) (2,018,000.00) (10,090,000.00) Year 3 - 1,463,203.13 - - 1,463,203.13 - 438,960.94
Net cash from financing activites - - - - - - Year 4 - 1,097,402.34 - - 1,097,402.34 - 329,220.70
Cash Flow (6,248,062.00) (4,213,843.00) (3,297,714.65) (2,381,004.69) (1,832,953.52) (17,973,577.85)
360,000 360,000
NPV (6,248,062.00) (3,664,211.30) (2,493,546.05) (1,565,549.23) (1,047,997.12) (15,019,365.71) 80 20
- 15,019,365.71 288,000 72,000

IRR
Island Power (IPWR)
Incremental Earning forecast for the project (Operating lease option) from the year 2017-2022.
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
2017 2018 2019 2020 2021 2022 Total
Income 15.42 15.88 16.36 15.87 15.87 15.87
Rent (130,000 USD for 5 years) 2,064,738.00 2,126,332.00 2,062,491.60 2,063,100.00 2,062,450.00 10,379,111.60
-
Total Income 2,064,738 2,126,332 2,062,492 2,063,100.00 2,062,450 10,379,112
Expenses 1,000,000 1,000,000 1,000,000
Installation & logistic to Third party (MVR1,00,000) (700,000.00) (150,000.00) (150,000.00) (1,000,000.00) 70 15 15
Additional Cost due to increase in fuel cost (1,000,000*20/100) (161,000.00) (39,000.00) (34,500.00) (234,500.00) 1,000,000 700,000 150,000 150,000
- 20 23 26 23
Option 3 : Operating Lease - 200,000 161,000 39,000 34,500
Operating Lease (2,158,000) (2,158,000) (2,158,000) (2,158,000) (2,158,000) (10,790,000.00)
-
Total Expenses (2,158,000.00) (3,019,000.00) (2,347,000.00) (2,342,500.00) (2,158,000.00) 0.00 (12,024,500.00)

Earning before interest and tax (EBIT) (2,158,000.00) (954,262.00) (220,668.00) (280,008.40) (94,900.00) 2,062,450.00 (1,645,388.40)
Income Tax (30%) 647,400.00 286,278.60 66,200.40 84,002.52 28,470.00 - 618,735.00 493,616.52
Net Income / (Profit / (loss) for the year) (667,983.40) (154,467.60) (196,005.88) (66,430.00) 1,443,715.00 (1,151,771.88)

Island Power (IPWR)

Forecast Cash flow for the project (Operating lease option) from the year 2017-2022.
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
2017 2018 2019 2020 2021 2022 TOTAL
Cash flow from operating activities
Profit Before Taxations - 2,158,000.00 (954,262.00) (220,668.00) (280,008.40) (94,900.00) 2,062,450.00 (1,645,388.40)
Adjustment for : Capital Allowance Calculation
Plus : Income Tax (647,400.00) (286,278.60) (66,200.40) (84,002.52) (28,470.00) (1,112,351.52)
Capital Tax liability
Less : Capital Allowance - - - Year Depreciation Allowance (25%) Difference (30%)
Net Cash from Operating activities - 2,158,000.00 (1,601,662.00) (506,946.60) (346,208.80) (178,902.52) 2,033,980.00 (2,757,739.92) Year 1 - 2,158,000.00 - - 2,158,000.00 -
Cash flow from Investing activities Year 4 - 2,158,000.00 - - 2,158,000.00 - 647,400.00
Net Cash flow from Investing activities
Cash flow from Financing activities
Cash Flow (2,158,000.00) (1,601,662.00) (506,946.60) (346,208.80) (178,902.52) 2,033,980.00 - 2,757,739.92

NPV (2,158,000.00) (1,430,055.36) (404,134.73) (246,424.59) (113,695.79) 1,154,134.88 - 3,198,175.58

- 3,252,752.49

IRR