Revitalization of T.P.Link Canal Badly Damaged Due To Excessive Flood During Flood 2010"

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ECONOMIC ANALYSIS

REVITALIZATION OF T.P.LINK CANAL BADLY


DAMAGED DUE TO EXCESSIVE FLOOD
DURING FLOOD 2010".

PROJECT COST. 364.624

COST BENEFIT RATIO 1: 3.218

NET PRESENT WORTH 1130.037

E.I.R.R. 22.975
COST - BENEFIT RATIO
(Unit Rs. Million)
Year Cost Total D.F. Present Benefits D.F. Present Net D.F Present
Const. O&M cost. 15% Worth 15% Worth Benefits 15% Worth
1 364.624 0 364.624 0.870 317.223 391.802 0.870 340.868 27.18 0.87 23.645
2 7.292 7.292 0.756 5.513 225.058 0.756 170.144 225.06 0.756 170.144
3 7.292 7.292 0.658 4.798 200.00 0.658 131.600 96.63 0.658 63.583
4 7.292 7.292 0.572 4.171 200.00 0.572 114.400 96.63 0.572 55.272
5 7.292 7.292 0.497 3.624 200.00 0.497 99.400 96.63 0.497 48.025
6 7.292 7.292 0.432 3.150 200.00 0.432 86.400 96.63 0.432 41.744
7 7.292 7.292 0.376 2.742 200.00 0.376 75.200 96.63 0.376 36.333
8 7.292 7.292 0.327 2.385 200.00 0.327 65.400 96.63 0.327 31.598
9 7.292 7.292 0.284 2.071 200.00 0.284 56.800 96.63 0.284 27.443
10 7.292 1:2.262 0.247 0.000 200.00 0.247 49.400 96.63 0.247 23.868
11 7.292 7.292 0.215 1.568 200.00 0.215 43.000 96.63 0.215 20.775
12 7.292 7.292 0.187 1.364 200.00 0.187 37.400 96.63 0.187 18.070
13 7.292 7.292 0.163 1.189 200.00 0.163 32.600 96.63 0.163 15.751
14 7.292 7.292 0.141 1.028 200.00 0.141 28.200 96.63 0.141 13.625
15 7.292 7.292 0.123 0.897 200.00 0.123 24.600 96.63 0.123 11.885
16 7.292 7.292 0.107 0.780 200.00 0.107 21.400 96.63 0.107 10.339
17 7.292 7.292 0.093 0.678 200.00 0.093 18.600 96.63 0.093 8.987
18 7.292 7.292 0.081 0.591 200.00 0.081 16.200 96.63 0.081 7.827
19 7.292 7.292 0.07 0.510 200.00 0.07 14.000 96.63 0.07 6.764
20 7.292 7.292 0.061 0.445 200.00 0.061 12.200 96.63 0.061 5.894
21 7.292 7.292 0.053 0.387 200.00 0.053 10.600 96.63 0.053 5.121
22 7.292 7.292 0.046 0.335 200.00 0.046 9.200 96.63 0.046 4.445
23 7.292 7.292 0.04 0.292 200.00 0.04 8.000 96.63 0.04 3.865
24 7.292 7.292 0.035 0.255 200.00 0.035 7.000 96.63 0.035 3.382
25 7.292 7.292 0.03 0.219 200.00 0.03 6.000 96.63 0.03 2.899
26 7.292 7.292 0.026 0.190 200.00 0.026 5.200 96.63 0.026 2.512
27 7.292 7.292 0.023 0.168 200.00 0.023 4.600 96.63 0.023 2.222
Total : 356.573 1147.544 618.730

BENEFIT COST RATIO = 1: 3.218


NET PRESENT WORTH.

Year Cost Total Benefits Incremental D.F. Present


Const. O&M cost. benefits. 15% worth
1 364.624 0.000 364.624 391.80 27.178 0.870 23.64
2 0.000 7.292 7.292 225.06 217.766 0.756 164.63
3 7.292 7.292 200.00 192.708 0.658 126.80
4 7.292 7.292 200.00 192.708 0.572 110.23
5 7.292 7.292 200.00 192.708 0.497 95.78
6 7.292 7.292 200.00 192.708 0.432 83.25
7 7.292 7.292 200.00 192.708 0.376 72.46
8 7.292 7.292 200.00 192.708 0.327 63.02
9 7.292 7.292 200.00 192.708 0.284 54.73
10 7.292 7.292 200.00 192.708 0.247 47.60
11 7.292 7.292 200.00 192.708 0.215 41.43
12 7.292 7.292 200.00 192.708 0.187 36.04
13 7.292 7.292 200.00 192.708 0.163 31.41
14 7.292 7.292 200.00 192.708 0.141 27.17
15 7.292 7.292 200.00 192.708 0.123 23.70
16 7.292 7.292 200.00 192.708 0.107 20.62
17 7.292 7.292 200.00 192.708 0.093 17.92
18 7.292 7.292 200.00 192.708 0.081 15.61
19 7.292 7.292 200.00 192.708 0.07 13.49
20 7.292 7.292 200.00 192.708 0.061 11.76
21 7.292 7.292 200.00 192.708 0.053 10.21
22 7.292 7.292 200.00 192.708 0.046 8.86
23 7.292 7.292 200.00 192.708 0.04 7.71
24 7.292 7.292 200.00 192.708 0.035 6.74
25 7.292 7.292 200.00 192.708 0.03 5.78
26 7.292 7.292 200.00 192.708 0.026 5.01
27 7.292 7.292 200.00 192.708 0.023 4.43
TOTAL :- 1130.04

NET PRESENT WORTH AT 15 % 1130.037


E.I.R.R.
DISCOUNT CASH FLOW OF NET BENEFITS.
PROJECT COSTS. RATE OF DISCOUNT (PERCENT)
Project Net 15 20 25
Year
Capital O&M Total benefits. benefits. Present Present
D.F. 15% D.F. 20% D.F. 25% Present worth
worth worth
1 364.624 0.000 758.326 391.80 -366.524 0.870 -318.88 0.833 -305.31 0.8 -293.22
2 0.000 7.29 7.292 225.06 217.766 0.756 164.63 0.694 151.13 0.64 139.37
3 7.29 7.292 200.00 192.708 0.658 126.80 0.579 111.58 0.512 98.67
4 7.29 7.292 200.00 192.708 0.572 110.229 0.482 92.89 0.409 78.82
5 --- 7.29 7.292 200.00 192.708 0.497 95.78 0.402 77.47 0.327 63.02
6 --- 7.29 7.292 200.00 192.708 0.432 83.25 0.335 64.56 0.262 50.49
7 --- 7.29 7.292 200.00 192.708 0.376 72.46 0.279 53.77 0.209 40.28
8 --- 7.29 7.292 200.00 192.708 0.327 63.02 0.233 44.90 0.167 32.18
9 --- 7.29 7.292 200.00 192.708 0.284 54.73 0.194 37.39 0.134 25.82
10 --- 7.29 7.292 200.00 192.708 0.247 47.60 0.162 31.22 0.107 20.62
11 --- 7.29 7.292 200.00 192.708 0.215 41.43 0.135 26.02 0.085 16.38
12 --- 7.29 7.292 200.00 192.708 0.187 36.04 0.112 21.58 0.068 13.10
13 --- 7.29 7.292 200.00 192.708 0.163 31.41 0.093 17.92 0.055 10.60
14 --- 7.29 7.292 200.00 192.708 0.141 27.17 0.078 15.03 0.044 8.48
15 --- 7.29 7.292 200.00 192.708 0.123 23.70 0.065 12.53 0.035 6.74
16 --- 7.29 7.292 200.00 192.708 0.107 20.62 0.054 10.41 0.028 5.40
17 --- 7.29 7.292 200.00 192.708 0.093 17.92 0.045 8.67 0.023 4.43
18 --- 7.29 7.292 200.00 192.708 0.081 15.61 0.038 7.32 0.018 3.47
19 --- 7.29 7.292 200.00 192.708 0.07 13.49 0.031 5.97 0.014 2.70
20 --- 7.29 7.292 200.00 192.708 0.061 11.76 0.026 5.01 0.011 2.12
21 --- 7.29 7.292 200.00 192.708 0.053 10.21 0.022 4.24 0.009 1.73
22 --- 7.29 7.292 200.00 192.708 0.046 8.86 0.018 3.47 0.007 1.35
23 --- 7.29 7.292 200.00 192.708 0.04 7.71 0.015 2.89 0.006 1.16
24 --- 7.29 7.292 200.00 192.708 0.035 6.74 0.013 2.51 0.0047 0.91
25 --- 7.29 7.292 200.00 192.708 0.03 5.78 0.01 1.93 0.0037 0.71
4283.51 778.07 505.07 335.32
NPV of benefits @ 20% = 505.067
NPV of benefits @ 25% = 335.320
= 505.067 - 335.320 = 169.748
E.I.R.R. 20% + 505.067 / 169.748 = 2.975
20 + 2.975 = 22.975

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