My project is defined as cold rooms that work at keeping different type of fruits, vegetables and meats for a long

time in a storage.

Firstly, we need to buy a land and do some site development then start to build our project using steel in the
construction process because it is cheaper than the concrete in this type of projects and more familiar with factory
construction.

We start the construction process by:

 Excavation and filling work

 Foundation construction
 Insulation work for thermal and humidity
 Building Construction (columns, beams, slab, …)
 Roof Construction

Land and Site Development -$450,000.00

Construction
Excavation and Filling Work $5,000.00
Foundation Construction $10,000.00
Insulation Work $4,500.00
Building Construction $20,000.00
Roof Construction $5,000.00
$44,500.00

After finishing the construction of the factory we need to do some engineering studies about the fruits and others
products before installation the cold rooms in the factory to know exactly the best temperature of each items.

So we need to hire an agricultural engineer to make a study for the best temperature for the elements taking into
consideration the different factors such as temperature of atmosphere and humidity along the year based on
previous study. After that, we need to hire a mechanical engineer to calculation the thermal stresses for each rooms
based on the data that taking from the agricultural engineer.

Engineering Studies
Agricultural Engineer $6,000.00
Mechanical Engineer $4,000.00
$10,000.00

Lastly, after we have the all calculation and data we should start to install the cold room and buy equipment.

Equipment
Shelves $1,000.00
Balances $1,500.00
Machineries $3,500.00
$6,000.00

Cold Rooms $12,000.00

 Cash Flow -$522,500 $21,405 $24,563 $26,828 $29,707 $646,205
NPV $24,257.60 NPV(10%) $43,683.59 NPV(-10%) $4,831.62
IRR 8.06%
Break-even
point (Unit) 9624.61
Break-even
Point ($) $22,821.43

NPV Analysis
NPV>+

NPV with 10% >0

NPV with -10%>0

So I will be optimistic because in different scenario NPV is greater than 0

IRR Analysis
I=7% < IRR=8.06%
Break-even Analysis

Break Even Analysis

$60,000.00

$50,000.00 Sales

$40,000.00 Total
Cost
$30,000.00

$20,000.00

$10,000.00

$0.00
0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 22000

I will gain profits after selling 9625 kg