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Drive Tech > Tech Drives > SPRS > Investment Analysis
     
Motor rating : 1650kW 1650kW
Application Smoke gas fan
Energy saving 240 units per hour (one unit equal to one kWh)
Maintenance cost Rs. 1.5 lakhs per annum (assumed to escalate @10% per year)
Net investment Rs. 45 lakhs
Number of hours of 4800 hours/year (assumed 20 hrs. per day for 240 operation per year days in a year)
Cost of energy escalation Assumed to be constant over the next 10 years
Tax rate 35%
Rate of depreciation 50% for 2 years
Considered life of equipment 10 years
Cost of energy per unit Rs. 4.20
Rate of discount for NPV 18%
(Data given is typical, and may vary from case to case)
 
  SPRS
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Years
     
No   Parameters
0
1
2
3
4
5
6
7
8
9
10
a Energy saving in Rs.lakhs
40.32
40.32
40.32
40.32
40.32
40.32
40.32
40.32
40.32
40.32
b Maintenance cost in Rs.Lakhs
1.50
1.65
1.82
2.00
2.20
2.42
2.66
2.92
3.22
3.54
c Net income Rs.lakhs (a-b)
38.82
38.67
38.51
38.32
38.12
37.90
37.66
37.40
37.10
36.78
d Tax on net Income @35%(Rs.lakhs)
13.59
13.53
13.48
13.41
13.34
13.27
13.18
13.09
12.99
12.87
e Net Cost saving in Rs.lakhs(c-d)
25.23
25.14
25.03
24.91
24.78
24.64
24.48
24.31
24.12
23.91
f Depreciation Rs.Lakhs
22.5
22.5
g Tax saving due to depreciation @35% (Rs.lakhs)
7.88
7.88
h Cash inflow in Rs.lakhs(e+g)
33.11
33.01
25.03
24.91
24.78
24.64
24.48
24.31
24.12
23.91
i Cash outflow in Rs.lakhs
45
j Net Cash flow in Rs.lakhs(h-i)
-45.00
33.11
33.01
25.03
.24.91
24.78
24.64
24.48
24.31
24.12
23.91
k Net present value (NPV)
-45.00
28.06
23.71
15.23
12.85
10.83
9.13
7.69
6.47
5.44
4.57
l Internal rate of return (IRR)
41%
m Payback period
1.9
years
  Product improvement is a continuous process in Larsen & Tourbro Limited. Information given herein is therefore subject to revision without notice.
     
 
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