• Research Paper on:
    Assessment of Feasibility for a Project

    Number of Pages: 8

     

    Summary of the research paper:

    This 8 page paper looks at a case study supplied by the student and undertakes a feasibility study looking at the income and expenditure to create a five year cash flow and then use a net present value (NPV) calculation to assess whether or not the proposal meets the assessment criteria. The bibliography cites 5 sources.

    Name of Research Paper File: TS14_TETank1.rtf

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    Unformatted Sample Text from the Research Paper:
    the expenditure. We have been told that the initial expenditure is 2 million, but there is also a upside 5% tolerance. In order to assess this in a conservative manner  we will use the upside. In this each of the tanks is being utilised separately, so we need to assess the different cash flows for each of the tanks. In  this we will make certain assumptions, we will assume the highest investment costs as well as the highest utilisation rates at 2000 m3. For tank one there are two  income streams that are generated the rental income for the tank and the use of the loading ands unloading arm. These need to be calculated on a yearly basis.  Figure 1 Rental from tank 1 at 2000 m3 Rental received per m3 per month 2.00 Volume of tank 2,000 Rental per month 4,000 Rental per year 48,000  Next we have been given the fee for the use of the arm loading and unloading the tank at 1.5 per m3. Figure  2 Arm usage fees per year at 2000 m2 fee per m3 1.5 volume carried per month 2000 Fees per moth 3000 Fees per year 36000 This gives us  a total a total of Figure 3 Total Income per year for tank 1 at 2,000 m3 Rental per year 48,000 Arm fees 36000 Total income for tank 1  84,000 However we are told that the tank will hold between 1,500 and 2,000 m3 so we need to look at the  alternative if there is only 1,500 held in this tank, this can then be used in to give a weighted result if we assume the chances of a 1,5000 and 

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