Ventura Aviation
Key Assumptions
Start 1
Construction cost (S) 1,150,OOG
Loan (S) 550,00(i
Loan interest rate 7.8 o
Loan term (yrs.) S
Hangar space (sq.ft.) 22,000
Rent (S/sq.ft. per nonth) 1. 10
Rent inflator 2 2(l9’o
Operating Costs (S/yr.) l05,0fl0
Cost inflator 2.10“o
Tax rate 21.0 o
Discount rate 7.5.I
Depreciation/year (S) 45,00G
Cas o s
Rent hiconie 290,400 296,789
minus: Operating Costs 105,000 105,000
minus: Interest 42,900 42,900
minus: Depreciation 45,000 45,000
= Taxable Income 7s J03
minus: Taxes 20,475 889
21.817
= Net Income 77,025 82,072
minus: Principal 94,983 94,983
= Net Operating Cash Flow (17s 8) (12§911
)
minus: Cash Outlay at Start (1,150,000)
plus: Depreciation 45,000 45,000
= Total Cash Flows (1,150,000) 27,042 32,089
NPV -241,706
IRR 4%
Note: Tax shields are the tax gains from expeiisiiig interest and depreciation. The formula is liter
, 3
303,318
105,000
###
5 000
110,418
23,188
###
94,983
(7,753)
###
###
mula is liter
Key Assumptions
Start 1
Construction cost (S) 1,150,OOG
Loan (S) 550,00(i
Loan interest rate 7.8 o
Loan term (yrs.) S
Hangar space (sq.ft.) 22,000
Rent (S/sq.ft. per nonth) 1. 10
Rent inflator 2 2(l9’o
Operating Costs (S/yr.) l05,0fl0
Cost inflator 2.10“o
Tax rate 21.0 o
Discount rate 7.5.I
Depreciation/year (S) 45,00G
Cas o s
Rent hiconie 290,400 296,789
minus: Operating Costs 105,000 105,000
minus: Interest 42,900 42,900
minus: Depreciation 45,000 45,000
= Taxable Income 7s J03
minus: Taxes 20,475 889
21.817
= Net Income 77,025 82,072
minus: Principal 94,983 94,983
= Net Operating Cash Flow (17s 8) (12§911
)
minus: Cash Outlay at Start (1,150,000)
plus: Depreciation 45,000 45,000
= Total Cash Flows (1,150,000) 27,042 32,089
NPV -241,706
IRR 4%
Note: Tax shields are the tax gains from expeiisiiig interest and depreciation. The formula is liter
, 3
303,318
105,000
###
5 000
110,418
23,188
###
94,983
(7,753)
###
###
mula is liter
