Dhahran Roads (A): Simplified

Negotiable Inputs

Parameters

pect_retainer_warranty
Perc_retainer
Start_Date
Advance on Contract
Billing Schedule

50%
5%
1/1/1993
15%

SAR millions
1993
11
1994
36
1995
45
1996
43
1997
33

Intermediate Calculations
Percent_BillPaid
total value_contact
Remainder_Equipmet

80%
168 million
25%

1
2
3
4
5

salvage_equipment
Cost_Equipment
Advance_Equipment
Hurdle_Rate
Cost Schedule
1993
1994
1995
1996
1997

0
38 SAR millions
75%
41%
SAR millions
difference
7
11
25
36
29
45
27
43
20
33

28.5

9.322034
25.85464
27.38839
22.17892
14.4246
99.16859

NPV Calcualtions

Year

1993

1994

1995

$8.80

$28.80

$8.80

$28.80

Cash Inflow
Advance
Retainer related flows
bill receipt
salvage value of equipment
total

25.2

$25.20

Cash Outflows
Equipment cost

($28.50)

($9.50)
($7.00)
($16.50)

Net cash flow

($3.30)

($7.70)

$3.80

present Value

($3.30)

($5.47)

$1.92

costs
total

NPV

($28.50)

$0.00

($25.00)
($25.00)

1996

1997

1998

1999

4.2
$26.40

4.2

$36.00
$36.00

$34.40
0
$34.40

($29.00)
($29.00)

($27.00)
($27.00)

$30.60

$4.20

($20.00)
($20.00)

$0.00

$7.00

$7.40

$10.60

$4.20

$2.51

$1.88

$1.92

$0.54

Hurdle_Rate
NPV
0% $22.00
5% $16.39
10% $12.11
15% $8.80
20% $6.21
25% $4.16
30% $2.53
35% $1.21
40% $0.14
45% ($0.73)
50% ($1.44)

NPV
$23.56
$18.56
$13.56
NPV

$8.56
$3.56
($1.44)
0%

5%

10% 15% 20% 25% 30% 35% 40% 4

Hurdle_Rate

% 30% 35% 40% 45% 50%

te