Discounted Cash Flow table cost plan option using figures at current (real) values (for analysis of benefits, see figure 4) | ||||||||||||||||
All sums in £'000 | year 0 | year 1 | year 2 | year 3 | year 4 | year 5 | year 6 | year 7 | year 8 | year 9 | year 10 | year 11 | year 12 | year 13 | year 14 | Cumulative Totals |
Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Set up and decommission |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.1 Capital e.g. fit out of office/ dilapidations before lease expiry | 0 | 4,952 | 29,751 | 36,407 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 71,110 |
1.2 Revenue e.g. removal costs/ operation forgone during set up | 0 | 0 | 0 | 1,702 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,702 |
2. Ongoing costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.1 Revenue e.g. rent, rates, utilities, staff costs, maintenance | 0 | 0 | 0 | 0 | 25,633 | 25,633 | 25,633 | 25,633 | 25,633 | 25,633 | 25,633 | 25,633 | 25,633 | 25,633 | 0 | 256,330 |
Total cost | 0 | 4,952 | 29,751 | 38,109 | 25,633 | 25,633 | 25,633 | 25,633 | 25,633 | 25,633 | 25,633 | 25,633 | 25,633 | 25,633 | 0 | 329,142 |
Benefits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. Costs saved/efficiencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.1 Revenue e.g. staff time saved and cost savings | 0 | 0 | 0 | 0 | 10,648 | 10,648 | 10,648 | 10,648 | 10,648 | 10,648 | 10,648 | 10,648 | 10,648 | 10,648 | 0 | 106,480 |
Total benefits | 0 | 0 | 0 | 0 | 10,648 | 10,648 | 10,648 | 10,648 | 10,648 | 10,648 | 10,648 | 10,648 | 10,648 | 10,648 | 0 | 106,480 |
Net cost (benefit) | 0 | 4,952 | 29,751 | 38,109 | 14,985 | 14,985 | 14,985 | 14,985 | 14,985 | 14,985 | 14,985 | 14,985 | 14,985 | 14,985 | - | 222,662 |
Discount factor (3.5% real costs of capital) | 1 | 0.9662 | 0.9335 | 0.9019 | 0.8714 | 0.842 | 0.8135 | 0.786 | 0.7594 | 0.7337 | 0.7089 | 0.6849 | 0.6618 | 0.6394 | 0.6178 |
|
Net present costs (or benefit) | - | 4,785 | 27,773 | 34,371 | 13,058 | 12,617 | 12,190 | 11,778 | 11,380 | 10,994 | 10,623 | 10,263 | 9,917 | 9,581 | - | 179,330 |
Source: Bicester Business Case, January 2004 | ||||||||||||||||
NOTES 1 The Discounted Cash Flow reflects the proposed term of the initial contract. The site has been amortised over 30 years, although the projected design life is 60 years. After its initial term, it was expected that the contract would be re-let. 2 The impact of inflation has been stripped out. 3 Value added tax was stripped out as this did not constitute a cost to Government. | ||||||||||||||||