Group 3

Sudhansu Dutta
Deepak Kumar
Abhishek Singh
Mamta Madhumita
Vivek Pratap Singh
Pranay Meshram

Petrozuarta - All Groups Assignment

Submitted by - Group 3
Asset Beta
Tax Rate
Risk Free Rate (Rf)
Market Risk Premium (Rm-Rf)
Cost of Debt
Start Up Premium (SP)
Country Risk (CP)

Leverage
40%
45%
50%
55%
60%
65%
70%
75%
80%

Equity
60%
55%
50%
45%
40%
35%
30%
25%
20%

Beta Levered
0.633333333
0.690909091
0.76
0.844444444
0.95
1.085714286
1.266666667
1.52
1.9

0.38
34%
5.60%
7%
10%
2.10%
6.67%

Ke
18.80%
19.21%
19.69%
20.28%
21.02%
21.97%
23.24%
25.01%
27.67%

Equity
WACC NPV
IRR
13.922% 592,978
13.534% 634,284
13.145% 678,222
12.757% 725,002
12.368% 774,857
11.980% 828,040
11.591% 884,830
11.203% 945,534
10.814% 1,010,490

Project
NPV
26%
26%
26%
26%
26%
26%
26%
26%
26%

125,473
183,068
244,175
309,052
377,983
451,276
529,268
612,329
700,862

Using Exhibit 15-10A

Year
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011

Forecast
Price of
Syncrude Total Revenue
12.25
12.56
12.87
78,524
13.19
429,059
13.52
804,108
13.86
569,156
14.21
583,597
14.56
598,398
14.93
613,568
15.3
629,117
15.68
645,052
16.07
661,386
16.47
678,126
16.89
695,283
17.31
712,869
17.74
730,892

Cash
available
for Debt
Service
-1,049,199
-578,931
-402,353
317,481
384,765
389,154
366,575
401,552
398,211
433,477
435,267
438,118
373,182
371,469
378,471

Cash used
for Debt
Service
Total Debt Reserve
Service
account Dividends
-61,134
-86,816
-94,955
-111,556
-160,922
-157,694
-154,466
-176,949
-188,009
-200,307
-201,204
-210,153
-166,148
-150,455
-158,377

-80,865
1,614
1,614
-11,509
-5,700
-6,345
-550
-4,671
10,623
19,595
-4,135
-3,438

1,576
185,047
225,457
233,074
200,600
218,903
203,857
232,620
239,393
238,588
226,629
216,878
216,655

Investment
-79,035
-1,986
-550,148

2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034

18.19
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64
18.64

749,365
768,299
768,798
769,309
769,831
770,365
770,911
771,468
781,859
782,441
783,036
783,644
784,266
784,901
785,550
786,214
786,891
787,584
788,291
789,014
789,753
790,508
791,279

387,428
328,978
358,441
391,545
383,528
382,868
327,531
308,024
283,051
299,464
295,554
294,578
289,656
289,705
278,074
276,806
274,449
263,604
247,540
250,329
242,937
240,644
226,196

-164,964
-85,668
-87,403
-124,573
-137,103
-68,691
-6,653
-6,653
-6,653
-6,653
-81,653

40,417
-933
-19,051
-6,498
4,468
62,038

3,327

262,881
242,378
251,988
260,474
250,893
376,215
320,878
301,370
276,398
292,810
217,227
294,578
289,656
289,705
278,074
276,806
274,449
263,604
247,540
250,329
242,937
240,644
226,196

Project
IRR
15%
15%
15%
15%
15%
15%
15%
15%
15%

Total
Debt
1,000,000
1,024,299
1,267,280
1,450,000
1,411,111
1,372,222
1,333,333
1,268,856
1,187,614
1,086,961
977,484
849,556
755,137
669,137
567,137

Equity CF Project CF
-79,035
-79,035
-1,986 -1,001,986
-550,148 -574,447
1,576 -402,353
185,047
317,481
225,457
384,765
233,074
389,154
200,600
366,575
218,903
401,552
203,857
398,211
232,620
433,477
239,393
435,267
238,588
438,118
226,629
373,182
216,878
371,469
216,655
378,471

449,137
401,689
348,241
252,034
134,448
75,000
75,000
75,000
75,000
75,000

262,881
242,378
251,988
260,474
250,893
376,215
320,878
301,370
276,398
292,810
217,227
294,578
289,656
289,705
278,074
276,806
274,449
263,604
247,540
250,329
242,937
240,644
226,196

387,428
328,978
358,441
391,545
383,528
382,868
327,531
308,024
283,051
299,464
295,554
294,578
289,656
289,705
278,074
276,806
274,449
263,604
247,540
250,329
242,937
240,644
226,196