Project Cost Analysis for Improvement or Equipment Figure out the Annual Depreciation Cost of the Improvement or Equipment total cost of equipment ÷ how many years it will last = Annual Depreciation Cost Total cost of equipment $ A Expected Economic Life (how long it will last) ___ years B Annual Depreciation Cost total cost of equipment ÷ how many years it will last $______/per year C Annual Budget for Improvement or Equipment Increase (decrease) 1 Additional Revenue $ (how much more crop production in $$) 2 Multiply by Gross Margin % (same as on the One Page Plan) 3 Additional Gross Margin $ (Line 1 X Line 2) 4 Annual Depreciation Cost $ ( ) (subtract Line C, cost per year) 5 Interest Expense $ ( ) (subtract cost of borrowing money for project) Operating Costs: 6 Utilities $ ( ) (subtract all other operating costs) 7 Labor $ ( ) 8 Other costs $ ( ) 9 $ ( ) 10 $ ( ) 11 Net Income $ (subtract lines 4-10 from Line 3) Calculate Return On Investment 12 Net income ÷ cost of equipment X 100 = % return on investment Line 11 ÷ Line A X 100 = ROI% %
Project Cost Analysis for Improvement or Equipment Figure out the Annual Depreciation Cost of the Improvement or Equipment total cost of equipment ÷ how many years it will last = Annual Depreciation Cost Total cost of equipment $ A Expected Economic Life (how long it will last) ___ years B Annual Depreciation Cost total cost of equipment ÷ how many years it will last $______/per year C Annual Budget for Improvement or Equipment Increase (decrease) Additional Revenue (how much more crop production in $$) $ 1 Multiply by Gross Margin (same as on the One Page Plan) % 2 Additional Gross Margin (Line 1 X Line 2) $ 3 Annual Depreciation Cost (subtract Line C, cost per year) $ ( ) 4 Interest Expense (subtract cost of borrowing money for project) $ ( ) 5 Operating Costs: (subtract all other operating costs) Utilities $ ( ) 6 Labor $ ( ) 7 Other costs $ ( ) 8 $ ( ) 9 $ ( ) 10 Net Income (subtract lines 4-10 from Line 3) $ 11 Calculate Return On Investment Net income ÷ cost of equipment X 100 = % return on investment Line 11 ÷ Line A X 100 = ROI% % 12
One_Page_Project_Cost_Analysis_Blank.docx