Budgeted Revenue & Costs Byproduct Startup costs Year 1 Year 2 Year 3 ($ 3,369) (1,246) (1,317) ($ 3,760) (1,666) (1,689) 2.50 4.00 Year 4 Revenue Yield (tons) Price per ton Total revenue $ 800 2,000 $ 600 2,400 $ 164 209 Operating costs Facility sanitation Labor Water & chemicals Machinery Miscellaneous Total operating costs 153 590 169 1,285 $ 184 856 105 140 117 1,402 Income above operating costs $ 715 $ 998 Assumptions: 6.50 percent cost of capital and reinvestment rate of return; annual revenue generation begins in year 4 and increases 3.50 percent per year through year 18, after which it decreases 3.50 percent per year, and annual operating costs also begin in year 4 and increase at a 1.75 percent rate of inflation per year through year 20. Table 1: Byproduct cash flows (revenues, costs, NCFS) Rev X Rev X Cost X1 Cost X NCF X1 | NCF X2 NA NA 2 3 | Budgeted Revenue & Costs Byproduct Startup costs Year 1 Year 2 Year 3 ($ 3,369) (1,246) (1,317) ($ 3,760) (1,666) (1,689) 2.50 4.00 Year 4 Revenue Yield (tons) Price per ton Total revenue $ 800 2,000 $ 600 2,400 $ 164 209 Operating costs Facility sanitation Labor Water & chemicals Machinery Miscellaneous Total operating costs 153 590 169 1,285 $ 184 856 105 140 117 1,402 Income above operating costs $ 715 $ 998 Assumptions: 6.50 percent cost of capital and reinvestment rate of return; annual revenue generation begins in year 4 and increases 3.50 percent per year through year 18, after which it decreases 3.50 percent per year, and annual operating costs also begin in year 4 and increase at a 1.75 percent rate of inflation per year through year 20. Table 1: Byproduct cash flows (revenues, costs, NCFS) Rev X Rev X Cost X1 Cost X NCF X1 | NCF X2 NA NA 2 3 |