The production plan

Plan volume release products

The following table shows sales volumes for the period of the project over the years in $ USD from 2017 to 2019.

Cash flows on 07.2016-12.2018 years.	Period				In total
	2016	2017	2018	2019
Solar Wind Tree 10 W		$36 000	$36 000	$36 000		$108 000
Solar Wind Tree 1 kW		$600 000	$600 000	$600 000		$1 800 000
Solar Wind Tree 5 kW		$1 200 000	$1 200 000	$1 200 000		$3 600 000
Total cash inflow	0	$1 836 000	$1 836 000	$1 836 000		$5 508 000

The forecast calculations are made on the estimated performance and demand for Solar Wind Tree. Implementation of generators ready to start in January 2017 Total production in monetary terms is expected in the amount of $5 508 000 for the whole period of project implementation.

List of general costs

The cost of doing the project a month in $ USA.

Expenses	Expenses
Wage	$7 700
Raw, materials	$76 500
Promotion project	$587
Utilities services	$103
Administrative expenses	$45
Household expenses	$60
Equipment service	$135

In the month of salary costs of personnel involved in the project will amount to $7 700.

The monthly cost of consumables (components for assembly) make up 918 000.

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Costs for utilities, including water, electricity, gas, solid domestic waste removal, per month make $586.

Administrative costs associated with other non-core costs of providing administrative needs will amount to $45.

Household expenditure on the purchase of consumables for the maintenance of cleanliness and order - of $60.

The costs of maintenance of equipment are $135 per month.

The cost of the promotion is $587 .

Total expenditure for the month $85.

Financial plan

The projection Cash-flow (cash flow statement) shows the flow of real money, ie, cash inflows (inflows of real money) and payments (actual cash outflows). The report consists of 3 parts:

• operating activities - the main type of activity, as well as other activities, creates the receipt and expenditure of funds;

• Investment activity - activity related to the acquisition, production and sale of non-current assets (fixed assets, intangible assets) and other investments;

• Financial activity - an activity that leads to changes in the size and composition of equity and borrowings of the company. As a rule, such activity is connected with attraction and return of loans to finance operating and investing activities.

Analysis of cash flow shows its positive trend from year to year project.

Cash flows on 07.2016-12.2019 years.	period						total
	2016		2017		2018	2019
CASH AT BEGINNING OF PERIOD	0		0		49 359	173 531
OPERATING ACTIVITIES
Solar Wind Tree 10 W		$36 000		$36 000		$36 000	$108 000
Solar Wind Tree 1 kW		$600 000		$600 000		$600 000	$1 800 000
Solar Wind Tree 5 kW		$1 200 000		$1 200 000		$1 200 000	$3 600 000
Total cash inflow	0	$1 836 000		$1 836 000		$1 836 000	$5 508 000
Wage		$92 400		$92 400		$92 400	$277 200
Raw, materials		$918 000		$918 000		$918 000	$2 754 000
Promotion project		$7044		$7044		$7044	$21 132
Utilities		$1 236		$1 236		$1 236	$3 708
Administrative expenses		$540		$540		$540	$1 620
Household expenses		$720		$720		$720	$2 160
Equipment service		$1 620		$1 620		$1 620	$4 860
Taxes		0		0		0	0
repayment %	0	$12		$9		$3	$24
Total cash outflow	0	$1 021 572		$1 021 569		$1 021 563	$3 064 704
Total net cash from operating activities	0	$218		$452		$420	$1090
INVESTMENT ACTIVITIES
Sale of fixed assets							0
Acquisition	$239						$239
Total cash outflow	$239		0		0	0	$239
Total net cash used in investment activities	-$239		0		0	0	-$239
FINANCIAL ACTIVITIES								0
Income from deposits of founders	0
Obtaining of a loan	$239						$239
Total cash inflow	$239		0		0	0	$239
Repayment of principal on the loan	0		$73		$88	$81	$239
Total cash outflow	0		$73		$88	$81	$239
Total net cash (+, -) from financing activities	$239		-$73		-$88	-$81	-$4
Total net cash flow (The money at the end of the month)	0		$144		$364	$339	$848
CASH AT END OF PERIOD	0		$144		$508	$848

Table of cash flows reflect the activities of the main stages of the project, allowing an assessment of the effectiveness of investments in the business project. The table presents the activity in the period from the predicted start of production (July 2016) for three years to December 2019 inclusive.

The main indicators of the effectiveness of investments in the project

Net Present Value (NPV), thousand. Tenge	227 659,54
Internal rate of return (IRR),%	66%
Index profitability investment (PI)	3,79
Rate discount	7%

The discount rate is calculated based on the method WACC rate of the loan 7%.

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(NPV) Indicator NPV is the difference between all cash inflows and outflows, cast to the current point in time (the time of the investment project evaluation). It shows the amount of money that an investor expects to receive from the project, after the cash inflows recoup his initial investment costs and recurrent cash outflows related to the implementation of the project. Since the cash payments are estimated taking into account their time value and risk, NPV can be interpreted as the cost, adds the project. It can also be interpreted as the total income of the investor. In this case, the figure is 227 659 540 tenge.

(IRR) Internal rate of return, or IRR (English internal rate of return.) - It is the discount rate at which the NPV of the project is equal to zero. The economic meaning of this parameter is that it defines the upper limit of the yield of the investment project and, consequently, the maximum unit cost on it: if the project IRR greater than the cost of capital invested, the project should be taken into consideration, otherwise - reject. In our case the figure is attractive for investment in the project and 66%.

(PI) Profitability Index - a relative indicator that determines the level of income per unit costs. The higher the value, the higher the return on investment. An attractive rate greater than 1 is considered. The profitability index for this project is 3.79.

Payback period (PP), years		2,0
Discounted payback period (PP), years		2,1

Payback period (PP) - the period of time necessary to revenues generated by investments, cover the costs of investment.

The simple payback period is two years, and discounted - two years and one month.

Calculated on the basis of the financial model of indicators point to favorable conditions for the financing of this project.

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