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Closed-Cycle Air Refrigeration Technology: Economic Case Study
[View Case Study in it's entirety.]
Appendix B: Base Case Calculations

Table B1. Projected CCAR Units, Base Case
Year
CCAR units placed
Cumulative CCAR units
Replacing Cryogenic refrigeration
Replacing mechanical refrigeration
1996
1997
1998
1999
2000
2001 e
2002 e
1
1
1
0
2003 e
3
4
3
1
2004 e
4
8
5
3
2005 e
4
12
7
5
2006 e
5
17
10
7
2007 e
17
10
7
2008 e
17
10
7
2009 e
17
10
7
2010 e
17
10
7
2011 e
17
10
7
2012 e
17
10
7
2013 e
16
9
7
2014 e
13
7
6
2015 e
9
5
4
2016 e
5
3
2
2017 e
0
0
0

Table B2. Cash Flow From Improved Quality, Base Case
Year
ATP investment
(million $)
Cumulative number
CCAR units (units
Volume of processed meat
(million pounds)
Incremental revenues
(million $)
Cash flow
(million $)
1996
-0.861
-0.861
1997
-0.915
-0.915
1998
-0.602
-0.602
1999
0
0
2000
0
0
2001 e
0
0
2002 e
0
0
0
0
2003 e
1
41.6
10.4
10.400
2004 e
3
124.8
31.2
31.200
2005 e
5
208.0
52.0
52.000
2006 e
7
291.2
72.8
72.800
2007 e
7
291.2
72.8
72.800
2008 e
7
291.2
72.8
72.800
2009 e
7
291.2
72.8
72.800
2010 e
7
291.2
72.8
72.800
2011 e
7
291.2
72.8
72.800
2012 e
7
291.2
72.8
72.800
2013 e
7
291.2
72.8
72.800
2014 e
6
249.6
62.4
62.400
2015 e
4
166.4
41.6
41.600
2016 e
2
83.2
20.8
20.800
2017 e
0
0
0
0
IRR 74%
NPV @7% $301 million

Table B3. Cash Flow From Improved Food Processing Yield, Base Case
Year
ATP investment
(million $)
Volume
processed meat
(millions pounds)
2 percent yield
loss reduction
(million pounds)
Value avoided
yield loss
(million $)
Additional cost (c/lb)
Incremental revenues
(million $)
Cash flow
(million $)
1996
-0.861
-0.861
1997
-0.915
-0.915
1998
-0.602
-0.602
1999
0
0
2000
0
0
2001 e
0
0
2002 e
0
0
0
1
0
0
2003 e
41.6
0.832
4.368
1
0.416
3.952
2004 e
124.8
2.496
13.104
1
1.248
11.856
2005 e
208.0
4.160
21.840
1
2.080
19.760
2006 e
291.2
5.824
30.576
1
2.912
27.664
2007 e
291.2
5.824
30.576
1
2.912
27.664
2008 e
291.2
5.824
30.576
1
2.912
27.664
2009 e
291.2
5.824
30.576
1
2.912
27.664
2010 e
291.2
5.824
30.576
1
2.912
27.664
2011 e
291.2
5.824
30.576
1
2.912
27.664
2012 e
291.2
5.824
30.576
1
2.912
27.664
2013 e
291.2
5.824
30.576
1
2.912
27.664
2014 e
249.6
4.992
26.208
1
2.496
23.712
2015 e
166.4
3.328
17.472
1
1.664
15.808
2016 e
83.2
1.664
8.736
1
0.832
7.904
2017 e
0
0
0
1
0
0
IRR 57%
NPV @7% $113 million

Table B4. Cash Flow From Food Processing Throughput, Base Case
Year
ATP investment
(million $)
Volume processed meat
(million pounds)
Increased volume by 1 percent
(million pounds)
Cash flow
(million $)
1996
-0.861
-0.861
1997
-0.915
-0.915
1998
-0.602
-0.602
1999
0
0
2000
0
0
2001 e
0
0
2002 e
0
0
0
2003 e
41.6
0.416
0.2184
2004 e
124.8
1.248
0.6552
2005 e
208.0
2.080
1.0920
2006 e
291.2
2.912
1.5288
2007 e
291.2
2.912
1.5288
2008 e
291.2
2.912
1.5288
2009 e
291.2
2.912
1.5288
2010 e
291.2
2.912
1.5288
2011 e
291.2
2.912
1.5288
2012 e
291.2
2.912
1.5288
2013 e
291.2
2.912
1.5288
2014 e
249.6
2.496
1.3104
2015 e
166.4
1.664
0.8736
2016 e
83.2
0.832
0.4368
2017 e
0
0
0
IRR 18%
NPV @7% $4 million

Table B5. Cash Flow From Replacing Cryogenic Systems, Base Case
Year
ATP investment
(million $)
Volume processed meat
(million pounds)
Increased volume by 1 percent
(million pounds)
Cash flow
(million $)
1996  
-0.861
1997  
-0.915
1998  
-0.602
1999  
0
2000  
0
2001 e  
0
2002 e
1
41.6
-2
0.832
2003 e
3
124.8
-2
2.496
2004 e
5
208.0
-2
4.160
2005 e
7
291.2
-2
5.824
2006 e
10
416.0
-2
8.320
2007 e
10
416.0
-2
8.320
2008 e
10
416.0
-2
8.320
2009 e
10
416.0
-2
8.320
2010 e
10
416.0
-2
8.320
2011 e
10
416.0
-2
8.320
2012 e
10
416.0
-2
8.320
2013 e
9
374.4
-2
7.488
2014 e
7
291.2
-2
5.824
2015 e
5
208.0
-2
4.160
2016 e
3
124.8
-2
2.496
2017 e
0
0
-2
0
IRR 40%
NPV @7% $33 million

Table B6. Combined Cash Flow, Base Case
Year
Cash flow from quality
(million $)
Cash flow from yield loss
(million $)
Cash flow from throughput
(million $)
Cash flow cryoreplacement
(million $)
Cash flow
B+C+D+E
(million $)
1996  
-0.8610
1997  
-0.9150
1998  
-0.6020
1999  
0
2000  
0
2001 e  
0
2002 e
0
0
0
0.832
0.8320
2003 e
10.4
3.952
0.2184
2.496
17.0664
2004 e
31.2
11.856
0.6552
4.160
47.8712
2005 e
52.0
19.760
1.0920
5.824
78.6760
2006 e
72.8
27.664
1.5288
8.320
110.2318
2007 e
72.8
27.664
1.5288
8.320
110.2318
2008 e
72.8
27.664
1.5288
8.320
110.2318
2009 e
72.8
27.664
1.5288
8.320
110.2318
2010 e
72.8
27.664
1.5288
8.320
110.2318
2011 e
72.8
27.664
1.5288
8.320
110.2318
2012 e
72.8
27.664
1.5288
8.320
110.2318
2013 e
72.8
27.664
1.5288
7.488
109.4808
2014 e
62.4
23.712
1.3104
5.824
93.2464
2015 e
41.6
15.808
0.8736
4.160
62.4416
2016 e
20.8
7.904
0.4368
2.496
31.6368
2017 e
0
0
0
0
0
IRR 83%
NPV $459 million
PV Investment ($2.10) million
PV Cash Flow $460 million
Benefit:Cost 220 :1

Return to Table of Contents or go to next section.

Date created: December 2001
Last updated: August 2, 2005

 

Closed-Cycle Air Refrigeration Technology: Economic Case Study
[View Case Study in it's entirety.]
Appendix B: Base Case Calculations

Table B1. Projected CCAR Units, Base Case
Year
CCAR units placed
Cumulative CCAR units
Replacing Cryogenic refrigeration
Replacing mechanical refrigeration
1996
1997
1998
1999
2000
2001 e
2002 e
1
1
1
0
2003 e
3
4
3
1
2004 e
4
8
5
3
2005 e
4
12
7
5
2006 e
5
17
10
7
2007 e
17
10
7
2008 e
17
10
7
2009 e
17
10
7
2010 e
17
10
7
2011 e
17
10
7
2012 e
17
10
7
2013 e
16
9
7
2014 e
13
7
6
2015 e
9
5
4
2016 e
5
3
2
2017 e
0
0
0

Table B2. Cash Flow From Improved Quality, Base Case
Year
ATP investment
(million $)
Cumulative number
CCAR units (units
Volume of processed meat
(million pounds)
Incremental revenues
(million $)
Cash flow
(million $)
1996
-0.861
-0.861
1997
-0.915
-0.915
1998
-0.602
-0.602
1999
0
0
2000
0
0
2001 e
0
0
2002 e
0
0
0
0
2003 e
1
41.6
10.4
10.400
2004 e
3
124.8
31.2
31.200
2005 e
5
208.0
52.0
52.000
2006 e
7
291.2
72.8
72.800
2007 e
7
291.2
72.8
72.800
2008 e
7
291.2
72.8
72.800
2009 e
7
291.2
72.8
72.800
2010 e
7
291.2
72.8
72.800
2011 e
7
291.2
72.8
72.800
2012 e
7
291.2
72.8
72.800
2013 e
7
291.2
72.8
72.800
2014 e
6
249.6
62.4
62.400
2015 e
4
166.4
41.6
41.600
2016 e
2
83.2
20.8
20.800
2017 e
0
0
0
0
IRR 74%
NPV @7% $301 million

Table B3. Cash Flow From Improved Food Processing Yield, Base Case
Year
ATP investment
(million $)
Volume
processed meat
(millions pounds)
2 percent yield
loss reduction
(million pounds)
Value avoided
yield loss
(million $)
Additional cost (c/lb)
Incremental revenues
(million $)
Cash flow
(million $)
1996
-0.861
-0.861
1997
-0.915
-0.915
1998
-0.602
-0.602
1999
0
0
2000
0
0
2001 e
0
0
2002 e
0
0
0
1
0
0
2003 e
41.6
0.832
4.368
1
0.416
3.952
2004 e
124.8
2.496
13.104
1
1.248
11.856
2005 e
208.0
4.160
21.840
1
2.080
19.760
2006 e
291.2
5.824
30.576
1
2.912
27.664
2007 e
291.2
5.824
30.576
1
2.912
27.664
2008 e
291.2
5.824
30.576
1
2.912
27.664
2009 e
291.2
5.824
30.576
1
2.912
27.664
2010 e
291.2
5.824
30.576
1
2.912
27.664
2011 e
291.2
5.824
30.576
1
2.912
27.664
2012 e
291.2
5.824
30.576
1
2.912
27.664
2013 e
291.2
5.824
30.576
1
2.912
27.664
2014 e
249.6
4.992
26.208
1
2.496
23.712
2015 e
166.4
3.328
17.472
1
1.664
15.808
2016 e
83.2
1.664
8.736
1
0.832
7.904
2017 e
0
0
0
1
0
0
IRR 57%
NPV @7% $113 million

Table B4. Cash Flow From Food Processing Throughput, Base Case
Year
ATP investment
(million $)
Volume processed meat
(million pounds)
Increased volume by 1 percent
(million pounds)
Cash flow
(million $)
1996
-0.861
-0.861
1997
-0.915
-0.915
1998
-0.602
-0.602
1999
0
0
2000
0
0
2001 e
0
0
2002 e
0
0
0
2003 e
41.6
0.416
0.2184
2004 e
124.8
1.248
0.6552
2005 e
208.0
2.080
1.0920
2006 e
291.2
2.912
1.5288
2007 e
291.2
2.912
1.5288
2008 e
291.2
2.912
1.5288
2009 e
291.2
2.912
1.5288
2010 e
291.2
2.912
1.5288
2011 e
291.2
2.912
1.5288
2012 e
291.2
2.912
1.5288
2013 e
291.2
2.912
1.5288
2014 e
249.6
2.496
1.3104
2015 e
166.4
1.664
0.8736
2016 e
83.2
0.832
0.4368
2017 e
0
0
0
IRR 18%
NPV @7% $4 million

Table B5. Cash Flow From Replacing Cryogenic Systems, Base Case
Year
ATP investment
(million $)
Volume processed meat
(million pounds)
Increased volume by 1 percent
(million pounds)
Cash flow
(million $)
1996  
-0.861
1997  
-0.915
1998  
-0.602
1999  
0
2000  
0
2001 e  
0
2002 e
1
41.6
-2
0.832
2003 e
3
124.8
-2
2.496
2004 e
5
208.0
-2
4.160
2005 e
7
291.2
-2
5.824
2006 e
10
416.0
-2
8.320
2007 e
10
416.0
-2
8.320
2008 e
10
416.0
-2
8.320
2009 e
10
416.0
-2
8.320
2010 e
10
416.0
-2
8.320
2011 e
10
416.0
-2
8.320
2012 e
10
416.0
-2
8.320
2013 e
9
374.4
-2
7.488
2014 e
7
291.2
-2
5.824
2015 e
5
208.0
-2
4.160
2016 e
3
124.8
-2
2.496
2017 e
0
0
-2
0
IRR 40%
NPV @7% $33 million

Table B6. Combined Cash Flow, Base Case
Year
Cash flow from quality
(million $)
Cash flow from yield loss
(million $)
Cash flow from throughput
(million $)
Cash flow cryoreplacement
(million $)
Cash flow
B+C+D+E
(million $)
1996  
-0.8610
1997  
-0.9150
1998  
-0.6020
1999  
0
2000  
0
2001 e  
0
2002 e
0
0
0
0.832
0.8320
2003 e
10.4
3.952
0.2184
2.496
17.0664
2004 e
31.2
11.856
0.6552
4.160
47.8712
2005 e
52.0
19.760
1.0920
5.824
78.6760
2006 e
72.8
27.664
1.5288
8.320
110.2318
2007 e
72.8
27.664
1.5288
8.320
110.2318
2008 e
72.8
27.664
1.5288
8.320
110.2318
2009 e
72.8
27.664
1.5288
8.320
110.2318
2010 e
72.8
27.664
1.5288
8.320
110.2318
2011 e
72.8
27.664
1.5288
8.320
110.2318
2012 e
72.8
27.664
1.5288
8.320
110.2318
2013 e
72.8
27.664
1.5288
7.488
109.4808
2014 e
62.4
23.712
1.3104
5.824
93.2464
2015 e
41.6
15.808
0.8736
4.160
62.4416
2016 e
20.8
7.904
0.4368
2.496
31.6368
2017 e
0
0
0
0
0
IRR 83%
NPV $459 million
PV Investment ($2.10) million
PV Cash Flow $460 million
Benefit:Cost 220 :1

Return to Table of Contents or go to next section.

Date created: December 2001
Last updated: August 2, 2005

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