Bee Hive System Valuation Formula

The following calculations are based on a single Reactor Cell producing fuel only,
And do not reflect value added through additional products and services.

Variables:
V = Value of Equipment
GPD = Gallons per Day Equipment Produces
Vpg = Value per Gallon
Cpg = Cost of Production per Gallon
ROI = Return On Investment (time to recover cost of equipment)
250 = Number of Working Days per Year

Formula:

V = { GPD(Vpg-Cpg)/ROI }(250) }

In words: The Value of the Equipment is equal to the Gallons per Day Produced multiplied by the Profit per Gallon (Value per Gallon minus Cost of Production per Gallon), divided by the desired time period for Return On Investment, multiplied by the Number of Working Days per Year

Valuation Models:

Maximum Value: One Bee Hive Reactor Cell operating at full capacity w/ three year amortization
GPD = 200 (established production capability of one Bee Hive Reactor Cell)
Vpg = $4 (established cost of one gallon of biodiesel in Mar08)
Cpg = $1 (established cost of production per gallon of biodiesel in Mar08)
ROI = .33 (banking standard of amortization of equipment over three years, 33% per year)
Then:
V = {200(4-1)/.33}(250)}
V = $454,545

Mid Range Value: One Bee Hive Reactor Cell operating at half capacity w/ three year amortization
GPD = 100 (one Bee Hive Reactor Cell running at half capacity)
Vpg = $4 (established cost of one gallon of biodiesel in Mar08)
Cpg = $1 (established cost of production per gallon of biodiesel in Mar08)
ROI = .33 (banking standard of amortization of equipment over three years, 33% per year)
Then:
V = {100(4-1)/.33}(250)}
V = $227,272

Minimum Value: One Bee Hive Reactor Cell operating at half capacity w/ one year amortization
GPD = 100 (one Bee Hive Reactor Cell running at half capacity)
Vpg = $4 (established cost of one gallon of biodiesel in Mar08)
Cpg = $2 (including all business overhead and predicting increase in cost of reagents)
ROI = 1 (amortize cost of equipment in one year)
Then:
V = {100(4-2)/1}(250)}
V = $50,000