DIRECT OPERATING EXPENSE SENSITIVITY ANALYSIS

[CASE A: Capital investment $1,060,000,000; debt/equity 90 percent/10 percent; interest 10 percent; depreciation 5 percent; rate of return 10 percent; tender 2,000,000 barrels per day]

1 Capital investment, $1,060,000,000; debt/equity, 90 percent/10 percent; interest, 10 percent; depreciation, 5 percent;

rate of return, 10 percent; tender, 2,000,000 barrels per day.

Year

Through-put (million barrels per day).
Annual tender (million barrels per day)..
Tariff (dollars per barrels) (from p. 4).
Annual revenue (millions of dollars).
Expenses (millions of dollars) (total direct
operating expenses including management
and overhead but less interest.).
Net income (millions of dollars) (before
depreciation and Federal income tax).
Depreciation (millions of dollars).
Net taxable income (millions of dollars).
Income tax at 48 percent (millions of dollars).
Net, after tax, income (cash flow including
income and depreciation) (millions of
dollars)...

CASE "A".-SCHEDULE OF EXPENDITURES AND RECEIPTS DISCOUNTED CASH-FLOW ANALYSIS

CASE A-DISCOUNTED CASH-FLOW ANALYSIS AND CALCULATIONS OF PROFITABILITY INDEX

At start.

During

20

2d, during.

20

.779

15.9

.688

13.8

.537

10.8

.370

7.4