Go Through The Entire Workbook, Sheet By Sheet and Enter Data Using The Following Rules:
- You Must Enter Data In The Light Green Boxes - You Can Enter Data (or Replace Data) In The Light Yellow Boxes - The Fields With No Shading Are Automatically Calculated - DO NOT ENTER DATA!
If You Don't Know An Exact Value For A Field Enter your best estimate
Application Description
Financial Inputs
Automation System Investment (Total system price including all automation, peripheral equipment, controls, engineering, build, set-up & run-off , and installation supervision at end users) Plant Startup Expenses (if not included in automation system investment) Installation Automation Systems Training Internal Labor for Startup and Debug Production Support/Service Contracts Combined State and Federal Income Tax Rate Corporate Hurdle Rate for Investment Decisions Capital Evaluation Duration In Years (Enter "5" or "7") Corporate Discount Factor / Weighted Average Cost of Capital Corporate Payback Period (Months) for this Application
Proposal 10xxxx Page 1 of 9 The information contained herein is proprietary and confidential, and should not be shared outside "nickname"
$125,000
$500 $2,000 $3,000 $0 37.3% 15.0% 5 5.0% 24
8/13/2008 - 1:28 AM
Application Description
Labor Savings
Current Number of Laborers per Shift:
Operators Maintenance Technicians Material Handlers 1.0
1.0
Automation System Number of Laborers per Shift:
Operators Maintenance Technicians Material Handlers 0.1
0.1
Number of Shifts: Annual Hours Per Laborer
Production Hours Per Day Production Days Per Week Production Weeks Per Year 8.0 5.0 50.0
2.0 2,000
Current Annual Labor Hours: Automation System Annual Labor Hours: Annual Labor Savings (Hours): Burdened Hourly Rate for Laborers:
Operators Maintenance Technicians Material Handlers $14.00 $20.00 $26.00 $18.00
4,000 400 3,600
Current Annual Labor Cost: Automation System Annual Labor Cost: Annual Labor Savings (Dollars): Annual Lost Time and Disability Savings:
Annual Average Percentage Rate: 5%
$56,000 $10,400 $45,600 $2,280
Proposal 10xxxx
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8/13/2008 - 1:28 AM
Application Description
Preventive Maintenance (PM) Labor Cost
Total Additional Number of PM Personnel Assigned: Burdened Hourly Rate for PM: Automation PM Man-Hours per Year 0.2 $20.00 96 ($1,920)
Annual PM Labor Savings/(Cost):
Proposal 10xxxx
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8/13/2008 - 1:28 AM
Application Description
Production Increase
Current Systems Annual Production
Production Rate Per Hour Total Available Production Hours Per Year Less Scheduled Downtime per shift (lunches, breaks, etc. - hrs) Less Annual Unscheduled Downtime (avg. percentage) Less Annual Change-Over (hours) Net Annual Production Hours 1.00 4.0% 960.0 4,000 (500) (160) 0 3,340
3,206,400
Automation Systems Annual Production
Production Rate Per Hour Total Available Production Hours Per Year Less Daily Scheduled Downtime (lunches, breaks, etc. - hrs) Less Annual Unscheduled Downtime (avg. percentage) Less Annual Change-Over (hours) Net Annual Production Hours 1.00 1.0% 960.0 4,000 (500) (40) 0 3,460
3,321,600
Increased Annual Production
Profit Per Unit $1.00
115,200
Increased Annual Profit
Proposal 10xxxx Page 4 of 9 The information contained herein is proprietary and confidential, and should not be shared outside "nickname"
$115,200
8/13/2008 - 1:28 AM
Application Description
Scrap Reduction Savings
Current Systems Annual Scrap
Scrap Rate Net Annual Production Hours (Current System) 5.0% 3,340
167
Automation Systems Annual Production
Scrap Rate Net Annual Production Hours (Automation System) 1.0% 3,460
35
Increased Annual Production
Profit Per Unit $1.00
132
Scrap Reduction Savings
$132
Proposal 10xxxx
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8/13/2008 - 1:28 AM
Application Description
Miscellaneous Saving
This Sheet To Be Used For Unique Savings Opportunities Specific To Your Application
Miscellaneous Saving #1 Miscellaneous Saving #1 Miscellaneous Saving #1 Total Miscellaneous Savings
$0 $0 $0 $0
Proposal 10xxxx
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Application Description
Annual Savings Summary
Operator Labor Savings : Lost Time and Disability Savings : Workers Compensation Premiums ($1.3 per $100 of payroll) System Preventive Maintenance: Production Increase Value: Scrap Reduction Savings: Miscellaneous Savings: $45,600 $2,280 $593 ($1,920) $115,200 $132 $0
Total Annual Profit Increase:
$161,885
Proposal 10xxxx
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8/13/2008 - 1:28 AM
Application Description
Investment Summary
Total Initial Investment: Total Annual Profit Increase (Before Income Taxes): Weighted Average Cost of Capital / Discount Factor: Corporate Hurdle Rate: 5 Year IRR Generated From Project:
(True Interest Return Generated by the Project) (If IRR > Hurdle Rate, Accept the Project) (If IRR < Hurdle Rate, Reject the Project)
$130,500 $161,885 5.0% 15.0% 74.7%
5 Year NPV:
(Present Value of Net Annual Cash Flows) (IF NPV > $0, Accept the Project) (IF NPV < $0, Reject the Project)
$346,397
Payback In Months (Before Income Taxes):
9.7
Proposal #10xxxx
T he
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8/13/2008 - 1:28 AM
Application Description
Financial Analysis
Today (Year 0) 5 Year (-) 7 Year (-) Total Equipment Investment (130,500) 0 (130,500) Year 1 0 0 0 45,600 2,280 593 (1,920) 115,200 132 0 (52,204) 109,681 (40,856) 52,204 121,029 (9,471) 0.95238 115,265 (15,235) Time Period 5 Years 7 Years Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
0 45,600 2,280 593 (1,920) 115,200 132 0 (22,372) 139,513 (51,969) 22,372 109,916 100,445 0.90703 99,697 84,463 NPV $346,397 $498,817
0 45,600 2,280 593 (1,920) 115,200 132 0 (15,977) 145,908 (54,351) 15,977 107,534 207,979 0.86384 92,892 177,355 IRR 74.7% 77.5%
0 45,600 2,280 593 (1,920) 115,200 132 0 (11,410) 150,475 (56,052) 11,410 105,833 313,812 0.82270 87,069 264,424
0 45,600 2,280 593 (1,920) 115,200 132 0 (8,158) 153,727 (57,263) 8,158 104,621 418,433 0.78353 81,974 346,397
0 45,600 2,280 593 (1,920) 115,200 132 0 (8,148) 153,736 (57,267) 8,148 104,618 523,051 0.74622 78,068 424,465
0 45,600 2,280 593 (1,920) 115,200 132 0 (8,158) 153,727 (57,263) 8,158 104,621 627,673 0.71068 74,352 498,817
Cash Flow Data: Operator Labor Savings Annual lost time and disability savings Workers Comp Premiums System Preventive Maintenance Increased Annual Profit (from Production Increase) Scrap Savings Miscellaneous Savings Depreciation (MACRS 7 on purchases made after 9/10/01 and Before 9/11/04) Net Pre-Tax Profit: Income Taxes @ 37.3% Add Depreciation (+) Net Annual Cash Flow (after tax): Cumulative Cash Flow: Weighted Avg Cost of Capital @ 5.0% Present Value of Annual Cash Flows Cumulative Discount Cash Flow
(130,500) (130,500) 1.00000 (130,500) (130,500)
1.09 Years After Tax Payback
Proposal 10xxx
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Application Description
Financial Analysis
(continued)
Payback Calculation Detail: Formula Checks: (Should = 0 ) 0 0 7,332 7,712
1.00 FALSE
0.00 0.09
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
IRR 7YR GUESS Depreciation Rates: (Straight-Line - Change if Applicable)
0.40003
#NUM! 0.50
0.17143
0.7747 0.50
0.12243 0.08743 0.06251 0.06244 0.06251
(0.0312)
Formula Checker Should = 0 Investment Year 1 Investment Year 2 Investment Year 3 Investment Year 4 Investment Year 5 Investment Year 6 Investment Year 7 Total Depreciation Inflation Factors Enter Rate Deprec. (52,204) Deprec. (22,372) 0 Deprec. (15,977) 0 0 Deprec. (11,410) 0 0 0 Deprec. (8,158) 0 0 0 0 Deprec. (8,148) 0 0 0 0 0 Deprec. (8,158) 0 0 0 0 0 0 (8,158) 4,074.2100 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
(52,204)
(22,372)
(15,977)
(11,410)
(8,158)
(8,148)
0.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Proposal 10xxx
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8/13/2008 - 1:28 AM