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Dhahran Simplified

This document summarizes a scenario for a roads construction project in Dhahran, Saudi Arabia from 1993 to 1997. It provides the current values for key inputs like projected annual revenues and costs. The results are a net present value of 0 and an internal rate of return error, indicating the investment is not financially viable under the given assumptions. Intermediate calculations show the total projected revenue as 168 million Saudi Riyals over the period.

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MohammadAdeelMushtaq
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113 views

Dhahran Simplified

This document summarizes a scenario for a roads construction project in Dhahran, Saudi Arabia from 1993 to 1997. It provides the current values for key inputs like projected annual revenues and costs. The results are a net present value of 0 and an internal rate of return error, indicating the investment is not financially viable under the given assumptions. Intermediate calculations show the total projected revenue as 168 million Saudi Riyals over the period.

Uploaded by

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

Current Values:

optimization 1

Changing Cells:
$C$9
11
16.8
$C$10
36
42
$C$11
45
42
$C$12
43
33.6
$C$13
33
33.6
Result Cells:
$D$9
6.5%
10.0%
TotalValue_content
168
168
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.

Dhahran Roads (A): Simplified


Negotiable Inputs

Parameters

Start_Date
Advance on Contract
Billing Schedule

1/1/1993
15%
SAR millions %of TV
1993
16.8
10.0%
1994
42
25.0%
1995
42
25.0%
1996
33.6
20.0%
1997
33.6
20.0%
sum of last 3
65.0%

Outcomes
Net Present Value(NPV)
Internal Rate of return (IRR)

0
Err:523

Intermediate Calculations
Percent_Retention
Percent_BillPaid
TotalValue_content
Remaining_EquipmentCosta

5%
80%
168 SAR
0.25

Cost_Equipment
Advance_Equipment
Salvage_Equipment
Hurdle_Rate

Cost Schedule

38 SAR millions
75%
0 SAR millions
18%

SAR millions
1993
1994
1995
1996
1997

7
25
29
27
20

NPV Calculation
Year (as on January)

1993

Cash Inflows
advance on contract
receipts on billing
retention
salvage value of equipment
total cash inflow

SAR 25.20

SAR 25.20

Cash outflows
Eqipment Costs advance
Equipment payment on delivery
Costs accumulated at each years end
Costs of equipment
total cash outflow

(SAR 28.50)

(SAR 28.50)

Net cash flow

(SAR 3.30)

present value

(SAR 3.30)

net present value

9.42

1994

1995

1996

1997

1998

1999

SAR 13.44

SAR 33.60

SAR 33.60

SAR 26.88

SAR 26.88
SAR 4.20 SAR 4.20

SAR 13.44

SAR 33.60

SAR 33.60

SAR 26.88

SAR 31.08 SAR 4.20

(SAR 9.50)
(SAR 7.00) (SAR 25.00) (SAR 29.00) (SAR 27.00) (SAR 20.00)
(SAR 16.50) (SAR 25.00) (SAR 29.00) (SAR 27.00) (SAR 20.00)

(SAR 3.06)

SAR 8.60

SAR 4.60

(SAR 0.12)

SAR 11.08 SAR 4.20

(SAR 2.59)

SAR 6.18

SAR 2.80

(SAR 0.06)

SAR 4.84 SAR 1.56

net present value

45.29

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