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Operational Budget Overview 9500-3300

1. The document contains operational budgets and cash flow summaries for a farm over 5 years. 2. Key expenses include production costs, spoilage costs, export costs, fixed costs, and other costs. Key revenues come from fruit production and processing. 3. The net present value of the project is 3,351,535.18 GH¢ and the benefit cost ratio is 1.94, indicating the benefits outweigh the costs.

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Jean
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28 views5 pages

Operational Budget Overview 9500-3300

1. The document contains operational budgets and cash flow summaries for a farm over 5 years. 2. Key expenses include production costs, spoilage costs, export costs, fixed costs, and other costs. Key revenues come from fruit production and processing. 3. The net present value of the project is 3,351,535.18 GH¢ and the benefit cost ratio is 1.94, indicating the benefits outweigh the costs.

Uploaded by

Jean
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

APPENDIX

TABLE 1: OPERATIONAL BUDGET


Operational Budget
Estimated total cost Year 1 Year 2 Year 3 year 4 year 5
activity/imput/yr cost(GH)
Community Entry 2500 0 0 0 0
Land preparation 500 0 0 0 0
Planting material 2000 0 0 0 0
Fertilizer 1800 0 0 0 0
Fungicides 300 300 300 305 305
20561.5
Labour 2400 3000 3500 4 4550
20866.5
production cost 9500 3300 3800 4 4855
11076.9 12461.53 12461.5 12461.5
export cost 9692.307692 2 8 4 4
17676.9 20061.53 54194.6 22171.5
total cost/Ha 28692.30769 2 8 2 4
1604923.
total cost/80Ha 2295384.615 1414154 1 4335569 1773723
Estimated Revenue
average yield per bunch/KG 7 8 9 9 9
average bunches per Ha 2000 2000 2000 2000 2000
total Kg/Ha 14000 16000 18000 18000 18000
1230.76 1384.615 1384.61 1384.61
no. of 13kg/Ha 1076.923077 9 4 5 5
246.153 276.9230 276.923 276.923
estimated rejects(20%) 215.3846154 8 8 1 1
30.7692 30.76923 30.7692 30.7692
number of bunchs 30.76923077 3 1 3 3
farm gate price/bunch 8.5 9 10 10 10
Export price/13kg($) 10 10 10 10 10
export price/13kg() 45 45 45 45 45
55384.6 62307.69 62307.6 62307.6
income/ha(Export)(GH) 48461.53846 2 2 9 9
276.923 307.6923 307.692 307.692
income(local)() 261.5384615 1 1 3 3
55661.5 62615.38 62615.3 62615.3
total income/ha 48723.07692 4 5 8 8
5009230.
total income/80Ha 3897846.154 4452923 8 5009231 5009231
2783.07 3130.769 3130.76 3130.76
% losses @ 5%/Ha 2436.153846 7 2 9 9
222646. 250461.5 250461. 250461.
%losses @ 5%/80Ha 194892.3077 2 4 5 5
gross margin/Ha 3866717.692 4432463 4986038. 4951905 4983928
5
3153846.
gross margin/80Ha 1407569.231 2816123 2 423200 2985046
other income/ha(suckers) 0 4000 8000 10000 11000
other income/80ha 0 320000 640000 800000 880000
fixed cost
tractor set 234783 0 0 0 0
processor 73372.5 0 0 0 0
vehecles 900000 0 0 0 0
installation 11005.875 0 0 0 0
building 99999.99 0 0 0 0
land 480000 0 0 0 0
total fixed cost 1799161.365 0 0 0
- 3153846.
net income/80ha 391592.1342 2816123 2 423200 2985046
other cost
administrative cost 50000 50000 50000 50000 50000
fuel 50000 30000 30000 30000 30000
lubricant 15000 9000 9000 9000 9000
power 208800 219240 229680 240120 250560
salaries 900000 900000 900000 900000 900000
- 281612. 315384.6 298504.
contingency 39159.21342 3 2 42320 6
total other cost 1134640.787 39000 39000 39000 39000
- 3114846.
net income(final)/80ha 1526232.921 2777123 2 384200 2946046
TABLE 2: SUMMAERIZED CASH FLOW
Summarized Cash Flow
items Year 1 Year 2 Year 3 Year 4 Year 5

production cost 9,500.00 3,300.00 3,800.00 20,866.54 4,855.00

spoilage(5%) 194,892.31 222,646.15 250,461.54 250,461.54 250,461.54

export cost 775,384.62 886,153.85 996,923.08 996,923.08 996,923.08

fruit purchase cost 150,000.00 164,000.00 189,500.00 215,000.00 240,500.00

fixed cost 1,799,161.37 - - - -


other cost
(production) 1,134,640.79 39,000.00 39,000.00 39,000.00 39,000.00

other cost (processing) 75,000.00 86,000.00 86,000.00 86,000.00 96,000.00

total cost 4,138,579.07 1,401,100.00 1,565,684.62 1,608,251.15 1,627,739.62


revenue

revenue (production) 3,897,846.15 4,452,923.08 5,009,230.77 5,009,230.77 5,009,230.77

revenue (processing) 270,000.00 296,000.00 339,250.00 382,500.00 425,750.00

total revenue 4,167,846.15 4,748,923.08 5,348,480.77 5,391,730.77 5,434,980.77

net revenue 29,267.08 3,347,823.08 3,782,796.15 3,783,479.62 3,807,241.15


TABLE 3: PAYBACK PERIOD

Payback Period
year investment operating cost cost benefit cashflow cum cf

(1,799,161.3
1 1,799,161.37 0 1,799,161.37 0 7)

2 - 1,209,640.79 1,129,776.92 29,267.08 (1,100,509.84) (1,100,509.84)

3 - 125,000.00 1,276,100.00 3,347,823.08 2,071,723.08 971,213.24

4 - 125,000.00 1,440,684.62 3,782,796.15 2,342,111.54 3,313,324.78

5 - 125,000.00 1,483,251.15 3,783,479.62 2,300,228.46 5,613,553.24


TABLE 3: BENEFIT COST RATIO

benefit cost ratio


present
yea operating DF@25 present value of
investment cost benefit value of
r cost % benefit(25%)
cost (25%)

1,799,161.3 1,209,640.7 1,129,776.9


1 7 9 2 29,267.08 0.80 903,821.54 23,413.66

1,276,100.0 3,347,823.0
2 - 125,000.00 0 8 0.64 816,704.00 2,142,606.77

1,440,684.6 3,782,796.1
3 - 125,000.00 2 5 0.51 737,630.52 1,936,791.63

1,483,251.1 3,783,479.6
4 - 125,000.00 5 2 0.41 608,132.97 1,551,226.64

1,492,739.6 3,807,241.1
5 - 135,000.00 2 5 0.33 492,604.07 1,256,389.58
TOTAL 6,910,428.29
3,558,893.1
1

NET PRESENT VALUE= PRESENT VALUE OF BENEFIT PRESENT VALUE OF


COST

= 3558893.11 - 6910428.29

= 3,351,535.18

BENEFIT COST RATIO = PRESENT VALUE OF BENEFIT


PRESENT VALUE OF COST

= 6,910,428.29
3,558,893.11

= 1.94

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