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FINANCIAL MODELING
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Financial Modeling & Justification
1. Situation:
- A Solvent Extraction Processor asked UTI to design a new Solvent Extraction Facility.
- UTI suggested a preliminary engineering plan to more clearly define the following:
- Throughput in production capacity
- Manufacturing space and warehousing requirements
- Available state and federal grants
- Number of Employees
- Total Installed Cost (TIC) to within +/- 10%
UTI assembled a complete engineering and financial justification given the client's existing market share and total sales, along with projected sales.
3. Cost for Model Development:
- $100 million for the development of a TIC to +/- 10 percent with 5% of the engineering completed and all the financials.
4. Client Benefits:
- After review of the cost and ROIs, UTI recommended that the owner upgrade his existing facility and not expend capital for a new solvent extraction system.
- The owner saved approximately $10 million in capital that was determined to have an ROI of about 9%, versus a 35% ROI for upgrades to existing facility and processes.
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Locations Across the United States
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Camarillo, CA
805.389.7420
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Decatur, IL
217.876.7730
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Kohler, WI
920.467.1440
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Madison, WI
608.825.4959
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Sioux Falls, SD
605.339.1250
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Woodbury, MN
651.578.8100
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