A. Executive Summary

B. Table of Contents

C. Summary of the Important Findings and Recommendations:

l. Setting, Purpose and Description of Project

2. Summary of Market Potential and Source of Input Supply

3. Summary of Technical Features

4. Schedules of Net Benefits and Capital Requirements

5. Benefit-Cost Ratios and Internal Rate of Return

6. Summary of Benefits and Costs Associated with the Project

7. Proposed Financial Plan and Projected Cash Flows

8. Recommendations for Implementation

D. Description of the Project:

l. Nature of the Project (including technical processes, general size and location, kind of output, kinds of input, time horizon, etc.)

2. The General Setting of the Project Location

3. Proposed Ownership, Structure and Management

4. Markets to be served and Existing Suppliers

5. Input Supplies and Competitive Users

6. Staffing Requirements and Sources

E. General Setting and Need for Project:

l. Physical, Economic, and Social Characteristics (members/Community) of the Project Area

2. Regional, National, and International Economic Relevance to Project

3. Relevant Governmental Policies and Programs

4. Description of the Problem Situation (which would be solved by the project)

5. Impact and Consequences on Members (and the Community if Needed)

6. Sampling Procedures and Survey Techniques Used to Support Project

F. Market Potential for Goods or Services, Markets Served (current and future):

l. Form and Quality of Product or Service, Markets Served and Channels Used

2. Projected Total Demand in Markets to be Served

3. Projected Competitive Supplies and Services

4. Sales Potential and Projected Sales Prices

5. Marketing Plan and Projected Marketing Costs

G. Raw Material Supply Potential and Procurement Plan:

l. Form and Quality of Materials Required and Potential Supply Sources

2. Projected Total Supply from Members and Non-members

3. Projected Competitive Demand

4. Procurement Potential and Projected Procurement Prices

5. Procurement Plant and Projected Procurement Costs

6. Form of Commitment of Raw Materials-Marketing Agreements, Etc.

H. Supply of Labor and Other Key Inputs:

l. Form and Quality of Labor and Other Inputs Required

2. Projected Total Supply from Sources Planned

3. Projected Competitive Demand for Inputs

4. Acquisition Plan, Training Program and Projected Acquisition Costs

I. Technical Characteristics and Specifications:

l. General Design and Technical Requirements

2. Comparison of Design and Expected Performance with Existing Operations

3. Reasons for the Advantages of the Design Selected

4. Proposed Sources of Supply and Method of Acquisition

5. Proposed Procedures for Quality Control and Construction Performance

6. Estimated Costs, and Sources Upon Which Estimates Are Based

J. Development Schedule and Production Plan:

l. Sequence of Development and Construction; Critical Points in Sequence

2. Detailed Development and Construction Calendar

3. Procedures for Controlling Development Schedule

4. Production Start-up and Initial Performance (or Yields)

5. Schedule of Transition to Full Output, and Controls to Insure that Schedule will be met

6. Schedules of Input and Output Based on Development and Production Plans

K. Capital Requirements and Investment Schedule:

l. Estimated Capital Cost for Major Facilities and Equipment

2. Estimated Capital Cost for Marketing and Other related Facilities

3. Replacement Schedules for Equipment and Facilities

4. Estimated Working Capital Requirements

5. Schedule of Estimated Total Capital Investment

L. Sales Plan and Revenue Schedule:

l. Seasonal Patterns of Product Demand and Prices

2. Storage Program and Projected Monthly Sales Schedule

3. Projected Net Monthly Product Prices

4. Projected Revenue Schedule over the Project Planning Period

5. Pooling Arrangements

M. Projected Operating Costs and Net Revenue:

l. Raw Material Costs

2. Labor Costs

3. Costs for Other Inputs

4. Management and Related Costs

5. Repair and Maintenance Costs

6. Costs for Research and Development, Overhead and Other Service Functions

7. Combined Annual Operating Costs

8. Projected Net Revenue over the Planning Period

N. Schedule of Net Benefits - Partial Budget:

l. Schedule of Added Net Income From Project

2. Schedule of Net Revenue Replaced by Project (if a Renovation Project)

3. Schedule of Combined Total Net Benefits from Project

O. Economic Feasibility of Project:

l. Present Value of Investment and Net Benefits Schedules at Alternative Discount Rates

2. Benefit-Cost Ratios and Internal Rate of Return for Project

3. Sources and Schedule of Benefits Associated with the Project

4. Sources and Schedule of Costs Associated with the Project

5. Present Value of the Combined Schedules of Associated Benefits and Costs

6. Project Potential in Relation to the Opportunity Cost of Capital, and Summary of Economic Feasibility

7. Sensitivity Tests-What if Prices and Costs Changed by Various Amounts

8. Other Financial Ratios as Needed by Project

P. Financial Plan for Project:

l. Proposed Equity Investment by Source of Funds

2. Proposed Sources, Schedule and Terms of Loans for Meeting Balance of Capital Requirements

3. Projected Cash Flow by Sector under Proposed Financing Plan

4. Projected Schedules of Depreciation, Interest and Taxes

5. Pro forma Balance Sheets and Operating Statements (3 years)

6. Pooling Arrangements

7. Pro forma Source and Application of Funds

8. Summary of Financial Plan and Recommendation for Implementation

9. Impacts on Members: Impact on the Cooperative

Q. Appendices and Notes:

1. Resume or Credentials of Person or Company Who Completed the Study

2. List Key Assumptions and Validations for Their Use.

3. List Footnoted Sources for the Document

Last Revised: September 5, 2001

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